StreetEasy New Development Report for July

I’ve already contacted StreetEasy regarding their incorrect ‘Notables’ section (the summary repeated in the email that goes out and the PDF), but the StreetEasy new development report shows reduced inventory (18% down year over year) and increased contracts (up 7.7% not down 32.8% like what they say in the summary).  This is a recipe for prices to go up, especially as demand for new development is outpacing supply.  The inventory is down to 7.3% months, which, relative to the rest of the market is low.

What they don’t break out is that while there are only 2% more price increases than 6 months ago, most of them (from what I’ve seen) are on the newest development, initially offering what was in the development plan but quickly raising it after they get approval.  Case in point, the lovely (in theory) Chelsea Green – a building with a lot of potential that I would like to sell in.  Bring me a buyer!

Of course not all new development is as rosy in the downtown area, The Citizen (124 West 23rd) is struggling to get it’s Tax Abatement  secured on claims that it did not really do any substantial work to the property until after the deadline in 2009.  As well, the relaunch of One Madison (really 23 East 22nd Street) is being delayed again to spring 2013.  The building has a had a long history of problems, including a bankruptcy filing that lasted a year and a half.

With low rates for purchasing and a continued stream of foreign investment into the NYC Condo scene, prices and demand should continue to rise in the foreseeable future.  A recent prospectus did note that NYC should see 1,500 new units a year for the next 3 years as delayed developments from the crash come online which should help fulfill demand.  It’s affect on pricing is unknown.