Development finance and funding - Essay Example

if not irrational housing underwriting, increased unemployment and retrenchments, reduced compensation, a high price correction, tax credit for first time home buyers, rising foreclosures, decline of appraisal quality, expanded market times and a number of other challenges (Yudelson, 2009, p.45). The increased level of sales in the latter half of 2009 was encouraging; a recovery in housing department was later attained in 2012 by an increased employment rates and greater consumer access to credit.

The number of sales jumped as inventory declined. The co-op sales in 2008 increased at an incredible rate of 28.3%. This level of sales is more than 3 times of the first quarter of 2009 which is considered then low point of market activity tipping in the fall of 2008. There is a consistency with the 10 year quarterly amount. The diminishing in the level of inventory in the market is attributed to the robust level of sales in the last quarter of 2009. The monthly absorption rate fell to 7.3 months due to the higher number of sales and lower inventory.

The fourth quarter of 2009 represented 51.1% of all apartment sales which was an increase from 43.2 in the previous year (Miller, Spivey, & Florance, 2008, p.51). This represents a significant change for the same period a decade ago when the market shares of co-op sales were way below that. Of the total c-op stock, 97.3% were considered resale listings and 2.7% comprised of new development of condo-ops apartments with condo rules. These sales have led to a steady development of commercial property in the Manhattan region (Abbey & Richards, 2009, p.23). The increase in the number of market days as listing discount jumped.

The average days on market was 151 days a decrease from the previous 152 days in 2008. Listing discount continued to increase reaching a mark of 18.3% as compared to 4.5% in the previous year. The combination of increasing number of sales and decreasing inventory suggested that the amount of remaining