New Construction Inventory Decreased 6 Percent from Previous Month to 376 Available Units According to The Mark Company Trend Sheet
Seattle – August 13, 2015 – Downtown Seattle new condominium prices decreased 2 percent in July from the previous month, remaining 4 percent higher than one year ago, according to the Condominium Pricing Index released today by The Mark Company, a leading urban residential marketing and sales firm.
The Mark Company Condominium Pricing Index for July was $757 per square foot. New construction inventory, which consists almost entirely of units at Insignia and Luma, decreased to approximately 376 units last month. This marks a decrease of 6% compared to the previous month, but remains 81% higher compared to one year ago. The year-over-year increase is due to the addition of 168 new units at Luma, which began pre-selling in April of this year.
“Despite strong economic conditions and low inventory levels, condominium prices in Seattle have not seen significant price appreciation over the past year,” noted Erin Kennelly, senior director of research, The Mark Company.
“New construction absorption, a useful indicator of buyer demand, showed that approximately 26 new condominiums were placed into contract last month, marking a decrease of 70% compared to the previous month, but an increase of 63% compared to the same month one year ago,” noted Kennelly.
Resale pricing increased 1 percent over the previous month to $631 per square foot, a decrease of 2 percent year-over-year. Resale inventory remains very low, with now only 57 active condominium listings in Downtown Seattle, representing only 1.4 months of inventory. The equilibrium between a buyer’s and a seller’s market is considered to be six months of inventory.
The Condominium Pricing Index, part of the firm’s monthly Trend Sheet (available at www.themarkcompany.com), represents the price per square foot of a new 10th floor, 1,000-square-foot condominium. It is based on recent sales data, and uses a proprietary quantitative method to measure trends in market demand. It tracks the value of a new construction condominium without the volatility of inventory changes.
The Mark Company has also released the July San Francisco Trend Sheet as well as the July Downtown Los Angeles Trend Sheet. Both are available for download at www.themarkcompany.com.
About The Mark Company:
The Mark Company is one of the nation’s premier urban residential marketing and sales firms. Founded by Alan Mark, The Mark Company provides a full range of core consulting services including analytics, design, marketing and sales for urban high-rises and suburban attached properties throughout the Western United States. The firm is a trusted partner to leading residential developers and financial institutions such as Tishman Speyer, CIM Group and Bosa Development. Since 1997, The Mark Company has represented more than 10,000 residences and generated over $5 billion in sales for some of the nation’s most notable and successful developments including 300 Ivy in San Francisco, Spire in Denver, Evo in Los Angeles, and The Martin in Las Vegas. Current projects include 181 Fremont Residences in San Francisco, Turnberry Towers in Las Vegas and SL70 in Los Angeles. For more information, visit www.TheMarkCompany.com.