Our February Absorption report has come out.
Check it out here!
Inventory finally rose (a tiny amount) across the entire Manhattan market.
The Upper West Side remains the market with lowest inventory, and inventory here is still down 24% year over year.
Our economist guru Greg Heym threw out a few predictions, which seem to ring true, based on the multiple bidding wars I’m seeing in the market and on new price levels for condominiums. He predicts:
- Continued inventory shortage
- Slightly rising mortgage rates (because of improving economy)
- Continued economic growth
- 5-10% price rise, on average, across the marketplace
Some other things to note for 2014:
We’re still nowhere near the inventory levels of 2006/2007, and construction permits constitute a fraction of that time’s.
And, what is being built, greatly, is rental product.
This article speaks to approximately 33% of the permits from the peak.
Of course, don’t forget that much of the building happening isn’t occurring in Brooklyn or Manhattan.
We know of but a few new developments across the city.
We’ll revisit things in a month and see how the spring is shaping up!
I’ll cover some new development in a separate post.