Perusing The Real Deal’s Data Book is always an interesting experience, and this was no different for the 2010 issue. Piquing our interest was the section outlining neighborhood inventory versus sales numbers. Arguably, we should see a correlation between the inventory/sales ratio and the degree of pricing distress per neighborhood.
The reason we found this particular data combination interesting is because of the context it can provide in ascertaining where there is likely to be additional negotiability in property prices. Not surprisingly, we see Harlem, Downtown and Midtown as likely to experience continued downward pressure. (They were already some of the hardest hit neighborhoods of 2009.) This is based not just from a supply and demand standpoint, but also from an absolute numbers perspective in terms of the sheer volume of inventory. Keep in mind that not all of those units submitted, particularly during 2009, actually came on the market least year.