CPG's take on the current NYC real estate market.

Inventory of New York residential properties has risen for the past 3 months and has stayed over 6,000 for about 2 weeks now. While 6,000 may sound like a large number, there still is not excess inventory and that is the key conclusion to be gleaned from the most recent market data. Remember, inventory has dropped significantly during the past few years as a result of strong sales volume. While inventory numbers are now ticking up, they are not near historical levels that typically warrant fierce seller competition. As long as there is not fierce competition among sellers, prices should remain stable.

Inventory is the metric to monitor as the full effects of the credit crisis are revealed via an economic slowdown and job losses. While it seems that the Fed has averted, at least for now, a systemic financial meltdown and will do everything in its power to continue to do so, we are now entering a period when we will begin to see the economic fallout from the credit crunch. Once the effects trickle down to the New York economy, we will have a better idea as to the near and mid-term direction of inventory and pricing.

Bottom line analysis: Apartments that are priced correctly are selling, though they are staying on the market longer. Savvy buyers who are confident in their future job status are shopping a bit more, but those armed with the right data to make informed decisions, are still buying.

Rich Bouchner
Commodore Property Group