Inventory Flat for June

I’m pissed off that I can’t report further decline in inventory in June. June, it turns out, was almost dead flat:image

However, flat is a lot better than up, and most of the flatness can be attributed to two factors, I believe:

1) Summer slows down buyers, while a lot of the pressures that create inventory, such as foreclosures, are not slowed by seasonal factors

2) Word is getting out that sales are picking up, and some of the sellers who had taken their units off the market are returning them. This is inevitable, and healthy.

As the graph above shows, we’ve come a long way since last September.

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4 Responses to Inventory Flat for June

  1. Bill says:

    Inventory will rise as the unsold condos in the Palms Place and Trump are properly listed. They are currently listed as pending sales.

  2. Bill,

    I checked the MLS today, and there are only five units showing as pending at Palms Place. 12 are contingent.

    Trump is showing zero units as either pending or contingent.

    I’m not saying that all of the unsold units at these projects are listed, but they’re definitely not skewing the pending numbers on the MLS much, if at all.

    Do you have an idea how many units are unsold and unlisted in these projects?

  3. Bill says:

    Trump has stated that all the units are sold. But they are sold ie in contract. It will takes months to shake out the units that don’t close. Then those units will be listed for sale and increase the supply of units. Further eveidence of the trump numbers is thier own complaining about not enough units to rent out since they have not closed.
    Also your project will complete three buildings in the near future and all the units are not sold. If they were all sold I am sure that you would tout that to the moon beacuse it would be a huge accomplishment in this market. So thats a hundred or so more units. As builders like you complete units that don’t close the inventory will increase. No maybe you will rent them out like at Manhattan so they are really in the inventory, but if someone walked into your sales office and wanted a unit you would sell it to them and take it our of rental.

    Bill

  4. frothingdeveloper says:

    I agree with you about the Trump numbers, though I’m not sure what the impact will be on the bread and butter Las Vegas market. Does an oversupply of high priced units on the Strip impact anything other than other high-priced projects on the Strip? Possibly…

    It’s also much tougher to get financing for a condo at a project like Trump than it is at a midrise project. Banks are much more skittish about resort high rises than they are about projects where people are actually going to be living.

    ManhattanWest has fewer than 100 units left, and we’re projecting that a significant number of the balance will be sold (ie, in contract) before the buildings open.

    Regarding Manhattan: I don’t know how other developers are doing it, but we are selling a limited number of units that are coming off lease- fewer than 20. We would not sell a unit under lease to someone who just walked in and wanted it.

    I believe that other than us and the Mercer, there aren’t any other significant midrise projects under construction that haven’t already been completed. The Mercer has sold roughly half of their 113 units. -Frothing Mark

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