After the building boom, the crash
Chris DeMarco has lived in East Harlem for all of her 42 years and has never seen a building boom comparable to what’s happened recently.
At the same time, as the economy slows and demand for condos and co-ops softens, she wonders whether her neighborhood will be stuck with empty or half-finished buildings.
“The condos are not selling,” said DeMarco, as she stood on East 115th Street, off First Avenue, where at least two new buildings have gone up recently. “There’s new apartments but nobody’s moving in.”
Condo sales in Harlem dropped by 76 percent in the third quarter of 2008, according to propertyshark.com, which compiles real estate data.
Long seen as one of the vanguards in the steady march of gentrification in Manhattan, neighborhoods like East Harlem could serve as canaries in the coal mine for a coming glut of condos and co-ops, especially at the higher end of the market.
“Transactions have basically stalled and inventory is on the rise,” said Bill Staniford, the CEO of propertyshark, of the Manhattan sales market. “People are not buying.”
Indeed, inventory in Manhattan in September reached its highest level in eight years, at 10,761, according to a report prepared by the Corcoran Group, while sales in the third quarter dropped to the lowest level in five years, coming in at just under 3,000.
The average price of a Manhattan apartment in the third quarter fell 11 percent to $1.48 million, according to Miller Samuel, a real-estate appraisal firm.














