Signs of a Bottom?

What a difference a month makes.  At the end of June when the various Brokerages released their market reports we were coming off a pretty dismal Spring and it was difficult to look forward with any optimism.  However, in the last thirty days there has definitely been a change in the ’tone’ of the market.

For one we are very busy.  Appointment requests are up across the board.  It is harder to get appointments to show other brokers exclusives than it has been over the last nine months, because their days are also booked, a sign that they too are busy.

We are seeing an increase in signed contracts and multiple bids on competitively priced properties.   Most notably the luxury market is starting to move because sellers are negotiating prices and facing up to the reality of the market.  Buyers will step up for a discount.  An prime example of a developer facing reality is Donald Trump’s twenty million dollar price reduction on the penthouse at 502 Park Avenue.

Nationwide the price dip from the high of 2006 to the Spring of 2009 was about 29%.  NYC took that hit in three quarters as opposed to three years.

Inventory levels have declined throughout the country over the past three months as buyers have stepped forward to take advantage of bargain prices and low interest rates.  New York City inventory peaked in June and is in decline ever since.  This is the combination of unrealistic sellers leaving the market and contracts signed, but the result is the same; less to sell.

For another opinion on the market, check out the Luxury Letter from our colleagues, Leonard Steinberg and Herve Senequier here at Elliman.

www.amandasheena.com

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