The timing could not be better to share our latest inventory report. What you’ll notice in it is that that launching of new units to market cannot keep up with the pace of sales. Our current market remains stronger than where we were this time in 2020.
Across all price points, this market activity exceeds that of even the craziest months of 2005-2006. This transactional pace is at least 50% higher than the busiest times I have ever seen, since I began in the business in 2002. It is important to note that condominium supply is up between 20-30% year over year, and cooperative units are in many neighborhoods up more than 50%. However, the pace of sales is so robust that it feels like there is not nearly enough inventory.
Per our firm’s Chief Economist, Greg Heym:
“While the number of contracts fell 3% to 356 last week, it was still a record amount for this week of the year.
• The decline in contracts was fueled by new developments, which plunged 18% from the week ending June 12.
• Contracts signed for co-ops rose 10% last week, while contracts for condos fell 19%.
• Units priced above $5 million saw a 30% jump in signed contracts, the biggest increase of any price category.
• Contracts signed for co-ops rose 10% last week, while contracts for condos fell 19%.
• Units priced above $5 million saw a 30% jump in signed contracts, the biggest increase of any price category.
The luxury market is on a run that hasn’t happened, well, ever. It’s a remarkable thing, to see inventory effectively drop for 8-9 months straight. I called the bottom back in November. It’s so gratifying to see where we are now. All of this is happening within a market that is still 10% off peak. With rates hovering closer to 2% than ever, is there any confusion about why there’s so much activity?
And it seems like we’re just beginning. Exciting Times! -Scott & HRT