Absorption defined for the purposes of this chart is: Number of months to sell all listing inventory at the annual pace of sales activity. (The definition of absorption in my market report series reflects the quarterly pace – nearly the same)

I started this analysis in August 2009 so I am able to show side-by side year-over-year comparisons. The blue line showing the 10-year quarterly average travels up and down because of the change in scale caused by some of the significant volatility seen at the upper end of the market. The “blue” line for average changes very little year to year but the scale of the chart does frequently.

Side by side Manhattan regional comparison:

August 2011 v. August 2012

[click images to expand]

The market below $1M is now moving very quickly – low mortgage rates are causing entry-level apartments to be rapidly absorbed.

Note: This chart series does not include shadow inventory (properties ready for market but not yet listed for sale) so this analysis somewhat understates the pace of condo absorption. The Uptown (Northern Manhattan) data set is too thin for a reliable presentation.


Manhattan Market Absorption Charts 2012 [Miller Samuel] Manhattan Market Absorption Charts 2011 [Miller Samuel]


One Response to “[Manhattan Absorption] August 2012 – It’s A Lot Faster On The Down Low”

  1. Gabe Sanders says:

    Fascinating read. Very similar situation in my little part of Florida, though exponentially lower values for the most part.