Manhattan’s inventory of homes for sale plunged to a seven-year low in Q3 as owners refrained from listing their properties in a market with flat prices, limiting a rebound in deals as buyer demand picks up.

The number of apartments on the market totaled 5,847 at the end of the quarter, a 24% decline from a year earlier and the lowest since the first three months of 2005, according to a report today by appraiser Miller Samuel Inc. and brokerage Prudential Douglas Elliman Real Estate.

http://www.bloomberg.com/news/2012-10-02/manhattan-apartment-inventory-slides-to-seven-year-low.html

bears ?

Inventory dropped by 24%, interest rate are at historical lows and yet prices are flat. That is suppose to be bullish? Can someone explain that?

Portion of article that looks at overall market:

"StreetEasy said purchases of condos and co-ops totaled 3,942, a 17 percent increase from a year earlier, while the median closing price climbed 1.2 percent to $850,000. The figure is an estimate that includes transfers recorded with the the New York City Department of Finance by Sept. 30, as well as transactions that were completed in September and are expected to be recorded later."

I think the article is on the bullish side. It is true that there could be a market in which there is so little inventory that people just give up and stop looking, and you dont see demand. But I think that is not what will happen here - people want to buy and rents are very high. Just my personal opinion.

since ACRIS implemented adding closing costs into the final sales price less than a yr ago, means that the prices are actually down by all indicators.

There is a palpable feeling that inventory is low, at least in the SE listings. I've been waiting for the flood of listings that usually comes in September, but have been dissapointed by both the quality and quantity of listings. I agree with the article that it seems many sellers are waiting for market conditions to improve unless they're in a position where they need to sell.

wheres steveF

ab_11218, the city doesn't add all closing costs to the recorded amount. It adds only the NYS/NYC RE transfer taxes, and it does that only if:

1. The law says they're payable by the seller, and
2. The buyer pays them.

Sponsors usually but not always contract for the buyer to pay them. That's why you'll see odd dollar amounts on ACRIS and SE for many new-development condo and sponsor-coop sales, but not for resales.

ACRIS has been including them in the sale amount since January 2003, if not before, so any stats since then already include them. It amounts to about 1.86% on a $1,000,000 sale.

Maybe Jonathan Miller will see this and let us know whether they were included in his pre-2003 numbers.

stevef is here. how the h-ll r u people? stevef does not frequent here much anymore b/c there really is nothing to debate. There is no inventory, demand is huge and prices are continuing to move higher for rents and sales. All of you bears here should have bought in late 08- early09 when the "sky was falling!" You know I was yelling it loud and clear. I was practically punching you in the face with it. Anyhow imo prices will be double what they are right now in 7 years...cheers!

and you will have paid off 7 years worth of principal..nice. How are you marco the vocal bear turned bull.

stevef im doin well...what people seem to forget here is that owning RE and equities can simultaneously be done.

"bears ?"

"Ahh let me see.......could have sworn it said owners refrain from listing in a flat market"
Wow, he totally missed the point of the quote, didn't he...
Bulls?

"stevef does not frequent here much anymore b/c there really is nothing to debate. "

Yes, SteveF was so consistently wrong, it was hillarious. The bulls don't bother much anymore.

"All of you bears here should have bought in late 08- early09 when the "sky was falling!" You know I was yelling it loud and clear."

Actually, correction.. SteveF posted that he was giving up on RE and switching to stocks (after missing the 100% stock runup). Meaning he screwed up both times.

Would you like me to point out the thread SteveF? Come on, it is hillarious.