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Peninsula Condo Market Remains Weak

SAN FRANCISCO-With pending re-sales and inventory increasing and the median price down 26%, the resale market remains weak and has yet to hit bottom, according to a new report.

By Brian K. Miller | Updated on May 25, 2009

SAN FRANCISCO-The condominium resale market on the San Francisco Peninsula remains weak and has yet to find a bottom, according to a new report by locally based Polaris Group, which offers development services to the industry. While pending re-sales increased 8.6% on a year-over-year basis during the three-month period ended on April 30th the median price declined by 26% to $398,000 and inventory levels continued to rise, reaching a new high of 9.5 months (607 units).

Polaris says a total of nine new condominium communities between Palo Alto and South San Francisco are offering 477 homes for sale came on line during the period, which is 49% of the total number of new units in those buildings, the others having been put under contract or sold. There are an additional 525 units under construction and not yet offered for sale, with scheduled deliveries in 2009- 2010.

“Although price discounts helped increase sales, further cuts are likely needed,” states the report. “In San Francisco, for instance, 20 to 25 percent price reductions boosted the rate of new home sales by about one-third.”

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