Last week I mentioned that
low inventory may have been partially responsible for the increase in the median asking price. Interestingly, the
May inventory report just released by Brown Harris Stevens (BHS) indicates that there may be greater confidence among sellers as the volume of inventory went up this month. The report shows the number of Manhattan apartments listings increased by 15 percent this month from April, resulting in a 9.4-month supply (i.e., months it would take to sell all active listings in a given market) in May.
More specifically, condominiums reported a 10-month supply, while co-ops reported an 8.8-month supply. The tightest market in Manhattan reporting 7.7-months was the area between 14th and 34th streets. This volume increase could be partially attributed to spring activity when people tend to list. And although
mortgage demand fell as rates rose to a two-month high, this didn’t have a significant impact on sales in New York. As you may recall,
60 percent of Manhattan condo sales were all cash buyers. This could be part of the reason sellers were more confident and eager to list.
Also noteworthy, the number of signed contracts trended up for the second straight week, according to the
BHS Weekly Contract Signed Report. The volume overall appears to be holding steady. However it should also be stated that the number of signed contracts is still 18 percent lower than a year ago, but that was an entirely different market.
