Manhattan Condo Inventory Shows Largest Annual Increase in Nearly Five Years, But Boost Doesn't Shake Record-High Sale Prices Condo sale prices reach 19-year high
According to Street Easy's Condo Price Index Manhattan condo inventory was up by 5.4 percent in July 2014 versus July 2013. This represents the largest annual increase since October, 2009.
As has usually been the trend, condo prices usually go down slightly with more inventory - but not in this recent case.
Manhattan condo sale prices rose 1.1 percent from June to July to a 19-year high, and remain 10 percent above year-ago levels, according to the StreetEasy Condo Price Index. This tells us that condo inventories in Manhattan have yet to satisfy the appetite for more of them... see below - more data from Street Easy;
Manhattan condo inventory grew 5.4 percent in July 2014 compared to July 2013, the largest annual increase since October 2009.
Manhattan condo sale prices rose 1.1 percent from June to July to a 19-year high, and remain 10 percent above year-ago levels, according to the StreetEasy Condo Price Index.
The StreetEasy Condo Price Forecast predicts condo price growth will post a slight gain in August, rising 0.4 percent from the prior month.
Pending sales, or homes that entered into contract, decreased 8.5 percent from June and are 7.1 percent below year-ago levels.
Median time on market for Manhattan condos increased to 63 days in July after spending spring months at a record low of 49 days.
Despite the annual growth, condo inventory in Manhattan is still well below historically normal levels. In July, inventory was 16.2 percent below the five-year average for Manhattan (see Figure 1), a deficit that will continue to drive up condo prices.
"The market has been starved for more supply, and the growth in prices is a direct result of stubbornly low inventory that simply cannot keep pace with demand in Manhattan," said StreetEasy Data Scientist Alan Lightfeldt. "The hope was for a greater lift from the busy spring months, but with inventory still so far below normal, condo prices will continue to hover at or above record highs."
Stay tuned folks - I figure condos in all price categories will enjoy some more lift !!