I’ve been selling residential real estate for 35 years, and for the first time I hosted a business talk last week in my Living Room with a guest banker and an attorney. I had a script and an agenda, but we were an intimate group, and the setting was informal, so as I touched on the stats that impact the market, I encouraged Q & A from the buyers and sellers who had gathered. To set the stage for discussing whether now is the time to buy or sell, I offered an overview of current inventory, identified 3 distinct market segments, highlighted the rise of the condo product, and considered absorption rates.
Talk continues about a possible bubble in real estate. In the last year, prices have jumped as much as 30-40%, and the pace of trading has been frenetic. In the months and year ahead, however, a return to more balanced activity with modest price appreciation is welcomed.
Inventory has been shrinking steadily. But with new construction and new conversions in the works, more than 25,000 apartments are scheduled to come into the marketplace in the next 18 months. For certain, the market will be impacted. Will the “if-you-build-it, they-will-come” mentality continue? Undoubtedly, some developments will be more secure in their locations than others, like The Plaza, The Stanhope and The Mayflower Hotels.
