Chelsea renaissance.

The inventory for residential properties in Chelsea is experiencing a slight rebound from the extreme lows of early 2004, as reported in the Inventory Tracking Study issued by Halstead Property LLC. While the inventory, of condominiums, co-ops and townhouses for sale in Chelsea has been on the rise, the historical low interest rates, combined with a significant lack of new development, have continued to make for a seller's market. The industry-wide study tracked the actual number of units available for sale in Chelsea (from 14th to 34th Streets and from Fifth Avenue to the Hudson River) on a bi-weekly basis from March 15, 2003 through July 15, 2004. Halstead Property's vice president Rich Hamilton prepared the Inventory Tracking Study.

"There has been a tendency by some agents and owners to put properties on the market at unrealistic pricing, which has caused those units to languish," Hamilton said. "Thus, selling seems to be stable at the prices that were experienced in first quarter 2004, which were between 15-20% above fourth quarter 2003."

The study reports a number of important facts:

There has been a 35.7% increase in inventory of condominiums and co-ops in Chelsea in all categories since January 15, 2004.

Since January 15, 2004, the inventory in the $0-400K, $901K1.25 million and $2.5 million+ categories for condos and co-ops has remained relatively steady.

Since the beginning of 2004, inventory in the $401K-650K, $651K-900K and $1.25 million-1.75 million categories has risen dramatically, with increases of 173.3%, 63.2% and 155.6%, respectively.

Unlike the condominium and co-op markets, the townhouse market initially experienced an increase in inventory from March 2003 through December" 2003, but has been experiencing a decrease from January 2004 through July 2004. The inventory for July 2004 is nearly equal to what it was in March 2003.

"Chelsea has emerged over the past four years as one of the fastest growing markets, due both to a boom in new construction and conversions of existing buildings," said Stephen Kliegerman, director of project marketing for Halstead Property. "As opportunities for further development dwindle, re-sales are quickly filling the void once addressed by entrepreneurial investors. The recent rise in inventory is attributed both to newcomers taking advantage of rapid appreciation and capital gains, as well as longtime residents looking to cash out.