Manhattan Inventory Problem Continues To Improve

(This guest post originally appeared at the author’s blog)

Absorption defined for the purposes of this chart as: Number of months to sell all listing inventory at the annualized pace of sales activity.

The absorption rate continues to improve from a bottom up, approaching the 10-year 10.0 month average for all three market areas (the data set is too thin for a reliable trend for Uptown).

Observations

The East Side absorption rate slows considerably above $1.5M. Co-ops are considerably slower than condos above that threshold. Condos generally absorb faster than co-ops.

The West Side absorption rate has reduced in higher price segments, up to $3M. Co-ops generally absorb faster than condos below $3M but take much longer than condos above the threshold.

The Downtown market absorption rate has reduced in higher price segments, up to $3M. Co-ops and condos are consistent below the threshold but co-ops absorb considerably slower above the threshold.

Note: This chart series does not include shadow inventory (properties ready for market but not yet listed for sale) so it understates condo absorption.

Absorb Charts

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at research.businessinsider.com.au.