For buyers of New York City real estate, any report of expanded inventory is welcome news to say the least. It is surely music to the ears of many buyers that Manhattan inventory has indeed increased by 52% since the first of the year (via UrbanDigs). It may be equally as exciting to buyers to hear that although the number of contracts signed has increased by 6% in the same time period, the year over year comparison shows a 13% increase in inventory and a nearly 20% decrease in contract signings. But this is what has happened this spring. What can we expect going forward?
Summer tends to be a more historically predictable season with both contracting inventory as well as fewer signed contracts. If we look at the past 4 years of inventory and contract signings, the patterns are quite predictable:
If history is any indication of what summer will bring, it is safe to say that inventory will contract by approximately twice as much as contract signings. Our market will remain tight as it continues its search for equilibrium.