The Marketing Directors Warns of Short Supply of New Homes in NYC in 2013
Six Month Supply Will Not Be Replenished Fast Enough to Meet Demand
NEW YORK, Jan. 7, 2013 /PRNewswire/ — Now that Congress has settled the "Fiscal Cliff" crisis, real estate developers in New York City might instead want to take a look at the looming "Physical Cliff" in the new condominium arena. So warns Adrienne Albert, founder and CEO of The Marketing Directors, a development advisory and master property marketing and sales force.
The new development supply and absorption numbers are tracked and analyzed in The Marketing Directors "New Product Supply" report that is provided exclusively to clients. The report tracks the number of current active listings (inventory), new listings, every property under development, listings under contract, absorption rates, and average number of closings per market per month.
According to the report, there is only a six month supply of new condominium homes scheduled to meet the market in 2013. At 2012 absorption rates, there is not enough inventory to satisfy market demand, concluded Ms. Albert.
"There is a very limited supply of new homes coming to the market in the next year, and as existing inventory is absorbed, prices will increase," she said. "We are advising our clients on ways to meet this market to achieve their pricing and absorption goals."
The Marketing Directors report notes that some neighborhoods are closer to the "cliff" than others. The Upper West Side, with just 329 homes in inventory, with 53 new home listings and an absorption rate of 33.4% is likely to run out of supply in just five months. Midtown East, which has a larger inventory (473 homes, with 51 new listings) and a lower absorption rate (19.0%) has a nine-month supply of new homes for sale.
"We think our clients need to be aware of this looming 'Physical Cliff' as they plan developments that will bring new homes to the New York City market," Ms. Albert said. "Demand will definitely outpace supply, and this will have a real impact on how developers approach the market – from site acquisition all the way through to pricing and sales."
To get a one-page summary of The Marketing Directors' New Product Supply report, please visit the company's web site at: www.themarketingdirectors.com
About The Marketing Directors
The Marketing Directors is a development advisory and master property marketing and sales force that works exclusively on behalf of owners and builders of new homes. Headquartered in New York, with offices and sales teams active around North America, The Marketing Directors is known for its success in selling and leasing homes at prices that help its clients achieve their goals for each development. In its 30+ year history, The Marketing Directors has helped its clients successfully sell-out more than 1,000 new developments across the country – more than any other marketing firm. It is headed by founder Adrienne Albert and Jacqueline Urgo.
Contact: Great Ink – 212-741-2977
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