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While the condo market in many parts of the  country have taken a severe hit, the Manhattan condo market is remaining stable while new inventory flows into the market. The market slowed at the new year as people were not sure of what was happening, but once they saw stability in New York City, buying resumed and has held steady.

This goes back to the rule that all real estate is local. While South Florida and San Diego are swimming in Condos that are not selling, Manhattan is remaining stable and doing well. So pay attention to the national trends, but talk to experts in your region. They can tell you how things are happening locally and could affect your home prices.

Not only are there thousands of condos currently on the market, but a review of building plans submitted by developers to the state attorney general’s office shows that this building binge has not yet slowed down and may produce a supply of new apartments that could be around for a while.
So far, applications have been submitted for more than 24,000 condominium apartments since January 2004, 7,000 of them in the first half of this year alone. This increase in filings comes as supply in the current market has been rising steadily, with broker listings nearly doubling since 2004. And since many developers list only a sampling of apartments in new buildings, the numbers of apartments available for sale is probably significantly larger than the inventory listed with brokers.
Still, despite caution by some lenders and some customers, many others, including condo developers, brokers and buyers who are still signing contracts and putting down hefty deposits, say they have an abiding faith in the resilience of the market in Manhattan.
Sales slowed sharply at the beginning of the year, when buyers hesitated because of the uncertainty about the direction of housing prices. But now brokers say that the pace is picking up, and they are seeing a slow but steady stream of visitors to sales offices and of contracts signed for new apartments.
Asking prices on new developments are no longer rising sharply, but confounding skeptics, they have remained fairly steady, at prices that are higher than buyers ever imagined five or 10 years ago. Developers say they are, for the most part, holding the line on prices, convinced that they have produced the right product for the right market.  via New York Times.

Related posts:

1. National Real Estate Sales Hold Steady
2. As Condo Market Slows in Bubble Regions, Properties are Reverting to Rentals
3. Manhattan Home Prices Soaring to an Average 1.37 Million Dollars
4. Manhattan Prices Fall Slightly After Long Run Up
5. I’ll Take Manhattan - Real Estate That Is…