Numbers Don’t Lie!
by Adrienne Albert
The Marketing Directors, Inc.
The Residential Market is thriving in Manhattan!
* Velocity is picking up in 2010 from the lows of 2007 to 2009. As there is a two to three month delay in the recording of deeds, we expect this number to increase at an even faster pace as mote recent closings are registered.
* Prices are increasing. Achieved prices in 2010 are in-dicarive of the real market without drivers like 15 Central Park West and the Plaza inflating values for the whole marketplace. Prices have stabilized in 2010 and are increasing as inventory is reduced.
* Inventory is stable. Consumer confidence is up! Owners are putting their homes on the market. These homes are being absorbed, so inventory levels are constant, but the inventory itself is constantly changing.
* Mortgage financing requirements are softening, allowing more buyers into the marketplace. As these requirements change to fit the needs of the consumer, more homes will change hands, and the market will accelerate its rate of improvement.
These are all signs of a healthy marketplace. The numbers don’t lie.
The majority of the closings this year have occurred Downtown and on the Upper East and Upper West Sides, long time established residential neighborhoods. In recent years, there was an influx of new construction condominiums such as The Lucida, The Brampton, and The Laurel on the Upper East Side and The Harrison and The Rushmore on the Upper West Side. Downtown, because it encompasses everything south of 14th Street, includes established neighborhoods like Tribeca and Soho and the recently transformed neighborhood of FiDi.
New construction is rebounding fast. There are 116 buildings in their initial sales ptogram in Manhattan bringing more than 10,000 condominiums to market, of which approximately 55% are sold. There are 2,000 more condominiums in buildings whose sales programs have halted.
There is talk of “shadow inventory”, or inventory that is not currently on the market but could be easily transferred to the market. Some estimate the shadow inventory count as high as 8,700 homes. Most of that inventoty, if it is that high, is concentrated in
Queens, Brooklyn, the Bronx, and outlying parts of upper Manhattan. It will not substantially affect the prime real estate offered for sale in most new buildings today.
Upper East and West Sides
Between the two neighborhoods, there are 33 buildings offering 3,300 homes. New rumors circulate daily about The Apthorp being approved or still conditional. Linden 78 is slated to re-launch in September of this year. After a troubled start, The Georgica has been making sales as well!
Midtown
In midtown, excluding Chelsea, there are 24 buildings offering 2,400 homes for sale. Hudson Hill, since going effective, has raised prices to over $1,000 per square foot. 29 Park Madison chose to rent the unsold inventory (approximately 40 homes) to finish their sales program. Closings at One Madison average $1,740 per square foot.
Chelsea
In Chelsea, there are 19 buildings offering 781 homes. +Art has reopened in the past few months with new sales models. There are a few sites that are in play, so expect more action here.
Tribeca
Tribeca and lower SoHo have 15 buildings offering 495 homes. The halt in sales at 56 Leonard and Five Franklin significantly decreased the upcoming supply of homes in Tribeca. Tribeca Summit is priced to sell. Get ’em while they are hot!
Financial District
FiDi has gone through a dramatic evolution. Established as a new residential enclave, it felt the brunt of the economic downturn due to its reliance on Wall Street employment. In the recent months, FiDi has become the value proposition of Manhattan, attracting bulk buyers and investors looking for discounts. There are 10 buildings in FiDi and BPC which have over 2,700 homes. One Rector Park (333 Rector) is slated to re-launch in September 2010. In Battery Park City, Liberty Luxe and Liberty Green are opening their sales program and will bring over 400 homes to the market, representing the crown jewel of the north end of Battery Park City.
What Does This Mean For You?
1. Velocity and Consumer Confidence are increasing. The home that you love might not be there next week. Plus, buyers are once again looking at changing their lifestyle.
2. Financing restrictions are easing, the interest rates are still low. There are more options available for you.
3. Buyers are more realistic about pricing and homes that are priced correctly are selling!
4. Established neighborhoods have weathered the storm and peripheral neighborhoods are still great values!
You heard it before, but you heard it here first! Buy Now!
Adrienne Albert, CEO
The Marketing Directors, Inc.
750 Lexington Avenue,18thfloor
New York, NY 10022
Tel: (212) 826-8822
Fax: (212) 826-1122
a. albert@tmdre.com
cahnroundup.com 