New York Downtown Inventory

Real Estate Agent with Douglas Elliman

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For the last year we have been tracking inventory above $1,000,000 along with signed contracts in the market downtown. There are a lot of stories we will be reading about real estate going forward but the big one will be about inventory.

So what have we found out and how do we think it will affect the market? Inventory has been on the rise all year previously peaking in May, but since the financial crisis hit Wall Street it is starting to climb at a much brisker pace.  At the same time the number of signed contracts is in decline.

We believe that even though prices will decline across the market that values in different locations and property types will start to deviate.  In other words we will be in a segmented market.  

From the graph you can see that over all inventory is up 88% since the same time last year, however almost all this increase has been in the condominium market where inventory downtown is up 121%.  At the same time we see co-op up only 42%.

This tells me that we will see greater price drops in the condo market.  Banks are now asking for a minimum of 20-30% down and two years liquidity and a credit score over 740.  That is the perfect description a co-op buyer.  If you are looking to buy co-ops offer better value at price per square foot and will continue to draw buyers.  This is coroborated by the increase in co-op contracts signed as opposed to the decline in signed condo contracts.




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