LIC condo supply hits all time high

Recently submitted a bid on one in one of the newer developments a lot of inventory. Quite surprised the sponsor was not a bit more negotiable. Our client wound up changing her mind, hoping prices come down on a higher floor unit that clears the building across from it. We made a solid offer on one of these high floor units, though it was rejected by the sponsor.

Price hits all time high as well

Interesting data point.

How long has the project been selling inventory? If they just started listing units, the developer may want to see how it performs before they start talking discounts. I have also noticed that some developers are only willing to negotiate on higher priced units and/or units that have low desirability (no view, no light, etc.). Or it could be they just think Amazon is going to come back....

You never know how a developer may or may not have painted themselves into a corner and can't sell at market prices. So they stick to their guns in terms of whatever pricing gets them out whole until their lenders cut them off. I've been brought in by lenders to clean up after developers who got in over their heads because they trusted me to sell in a reasonable amount of time at reasonable prices. From what I understand there are currently projects on the market which at face value still belong to the developer but quietly behind the scenes the "keys" have been turned over to the lenders.

@30 - curious to hear (if you have some idea) how those buildings did once you were done (or mostly done). Is it common for the building budgets to get adjusted down as well, or is the intention generally to adjust the unit prices such that the intended budget doesn't get cut in a way that's problematic to the building's health?

The additional friction in the market created by developers who "can't" be flexible just compounds the price discovery problem of resale friction from sellers with anchored expectations from stronger markets.

In the buildings I dealt with construction was either finished or mostly finished, so there was no talk of changes.