Miller's nuggets on Manhattan absorption: coops + downtown stronger
meaningful? maybe not until there’s more data
The Miller has a Matrix post today chewing over some of his “absorption” data, now that he has more than a year of absorption data. He is most interested today in the 2009 to 2010 comparison, noting an apparent weakening at the low end of the Manhattan real estate market, units under $500,000. What struck me from his 2010 chart were two different points: (a) the coop market shows stronger absorption, pretty much across the island and all price ranges under $5mm; and (b) downtown absorption was a bit stronger than either East Side or the West Side (though I initially found it difficult to discern the actual regional variations because he uses different scales).
I can’t think of a reason that coops below $5mm were generally absorbed more quickly, especially as coops generally take longer to close once a contract is signed. This chart is the kind of thing that sets The Miller apart: from time to time he goes back through his data to answer a question, stepping outside the quarterly report template.
Note that “absorption” merges two data sets: current inventory, expressed as the number of months to sell all inventory at the current rate of sales. I.e., absorption improves (shrinks) by either or both of inventory reduction and/or increased rate of sales.
© Sandy Mattingly 2010