The Upper West Side has the highest absorption rate in Manhattan at 33.4 percent, which means its supply of listings could run out in five months, according to a new Marketing Directors report.
The report tracked condo listings in five neighborhoods — the Upper West Side, the Upper East Side, Midtown West, Midtown East and Downtown — below 110th Street as of November 2012. Absorption rate describes the pace at which available homes are sold in a real estate market during a set time period. The report included a total of 2,381 active condo listings.
The Upper West Side has 329 homes in inventory with 53 new listings. Downtown had the second-highest absorption rate at 27.1 percent, with 606 available units and about six months of inventory. The Upper East Side came in third, with a 24.6 percent absorption rate, 404 current listings and seven months of inventory. Midtown West, with 566 available units and a 20 percent absorption rate, also offered seven months of inventory.
Midtown East had a 19 percent absorption rate for 473 on-the-market homes, with a home supply of 9 months.
“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,” Adrienne Albert, founder and CEO of The Marketing Directors, said in a statement. “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.”