manhattan skyline There is no doubt that the Manhattan residential real estate market took a dive after the recession hit in 2008. Some projects were put on hold while others, already under way, saw sales fall off significantly.

But with employment on the rise and mortgage rates at epically low levels, Elliman reports that inventory fell 13.5 per cent  to 6,981 listings in the second quarter. New development inventory had the most dramatic change, falling 20 per cent since this time last year.

Prices haven’t quite rebounded yet. In fact, the average sales price fell from the same period last year. But the decline was largely due to a different product mix rather than lower home values. First-time purchasers are entering the market, driven by high rent prices and low mortgage rates, and dragging down the average price.

So what does that mean?

With inventory falling and general economic indicators like employment improving, things are looking up. Developers are likely blowing some dust off of their stalled projects and thinking about re-launching them sometime soon.

Keep your eye out for hoarding and building permits. Looks like the market is, albeit tentatively, coming back.

Click to check out new homes and condos in Manhattan.

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