June 15, 2008 >> return to MAI in the news
Brokers lament high inventory
Drop in residential transactions as buyers grow more cautious
By Lauren Elkies
HIGLIGHTED MANAGERS:
John Harhay
Vice President and Sales Manager
Kathleen Brimlow
Planning & Development Manager
An excerpt:
With the traditionally sluggish summer season upon us, the advent of the credit crisis not too far behind and inventory piling up, real estate brokers are bracing themselves for what could be a particularly slow few months.
The number of co-op and condo units and townhouses on the market jumped 11 percent to 7,212 homes between March and April, according to the most recent research from appraisal company Miller Samuel. From February to March the increase was 4.8 percent, Miller Samuel data indicate.
"Inventory levels are rising primarily as a result of lower sales activity," said Jonathan Miller, president and CEO of Miller Samuel.
Buyers are weighing options more carefully, sellers have not been eager to slash prices, and there appears to be no reason for that to change now.
"Buyers are taking much longer to make their decisions, and there is a large amount of insecurity and concern today [due to the] recession, economic slowdown and job security," said John Harhay, a vice president and sales manager at Manhattan Apartments Inc.
The rental market does not look like it will reach eyebrow-raising prices after a period of units languishing on the market and rents staying flat or dropping.
Slow summer?
The Real Deal wanted to get a sense of how the market is doing. To that end, The Real Deal distributed a survey to real estate experts last month. Here is a sampling of what they had to say:
Kathleen Brimlow, director of planning and development, Manhattan
Apartments Inc. :
"I believe we will see fewer transactions in June and July".