-Inventory fell sharply from same time last year to the lowest 2Q on record (13 years). Tight credit and rising sales are keeping supply low.
-Sales jumped despite low supply. Most active spring since 2007 and lowest 2Q inventory in 13 years.
-All price indicators increased from year ago levels. Low inventory and release of pent-up demand pressed prices higher. Tight credit tempered rate of increase.
-Combination of rising sales and falling inventory resulted in fastest absorption rate on record.
-Listing discount (spread in price between buyers and sellers) narrowed as sellers control market.
-New development closing market share remains low, but expect to reverse trend next year as closings begin.
-Luxury market continued to see more modest rate of inventory decline than overall market.
-Rising mortgage rates at end of quarter had no apparent impact on results. Going forward, rising rates are expected to temper pace of sales and price growth but aid easing of credit.
Here’s an excerpt from the report:
…The Manhattan housing market continues to experience record low inventory levels, but surprisingly enough, is also seeing an uptick in the number of sales. The record high levels of sales in the fourth quarter in 2012 prompted expectations that the first half of 2013 would lose sales volume as a result of last year’s “poaching from the future.” However, after several years of consumer uncertainty culminating with the national election buildup to the federal fiscal cliff deadline at the end of the 2012, there was a release of pent-up demand into 2013, pressing prices modestly higher. The number of sales jumped 18.8% to 3,144 from the prior year quarter, the most active spring market in terms of sales since 2007…
Here is some of the press coverage for the report.