YOUR RE AL ESTATE RESOURCE
NEIGHBORHOOD AC TIVIT Y
ADVANTAGE SECOND QUARTER 2012
LOOK FOR RESURGING MARKET WHILE MOST residential real estate companies reported a strong performance in the second quarter, there are indications that our euphoria must be tempered by signs of uncertainty. First and foremost is the dramatic decline in the inventory available for sale. Two years ago, we saw Manhattan inventory in excess of 12,000 apartments; now fewer than 8,000 units are on the market. The sheer lack of product is reducing options for buyers and, therefore, the number of transactions. The fundamental economic principle We expect that low supply justifies higher prices is not evident. Many buyers are dramatic market still feeling economically conservative or disinclined to bid aggressively on apartments. In turn, many sellers are refusing to respond to low bids improvement in or have taken their properties off the market with the hope that the the near term. future will hold a stronger economy and higher prices. We believe that the New York City economy is exiting a period of complacency and that trends show growing overall confidence. Large construction projects have been announced and the issuance of new building permits has significantly increased. Bellmarc is positioning itself for a resurgent market by upgrading our office environments, increasing our staffing and expanding our technology. We expect a dramatic market improvement in the near term. The second half of 2012 through 2013 should be an exciting period.
Neighborhood Snapshots WEST SIDE We are in a different market. Cash buyers are waiting, yet sellers are sitting on the sidelines waiting for lost equity to return or moving because of lifestyle changes. EAST SIDE A shortage of properties and pent-up demand by buyers has resulted in bidding wars at all price levels. New inventory is quickly absorbed. That’s good news for sellers. It is time to list! MIDTOWN Inventory is tight and prices are climbing. If a property is priced right, it is gone! A shortage of larger apartments is creating an opportunity for sellers. GRAMERCY/CHELSEA As some price movement continues in the larger units, continued on page 3
Bellmarc Advantage Quarterly Report