The New York Times has this update on the local market. "The smoke may have cleared from the last of the Memorial Day barbecues, but two months into the second quarter, many New Yorkers are still hazy about the state of the local real estate market."

"Some concerns may be well-founded. Inventory in Manhattan is up 67 percent for May 2006 over May 2005, according to Jonathan J. Miller, of the Miller Samuel appraisal firm. Co-op inventory is up 53 percent and condominium inventory is up 87 percent, he said, adding that the condo figure is mainly attributable to new development."

"Also, apartments are staying on the market longer. In the first quarter, the average was 138 days, according to Miller Samuel. It is now approaching 150 days, Mr. Miller estimated, adding that he thinks that a lot of the inventory is overpriced."

"So far this quarter, which began on April 1, those most affected by the market are the people who are first-time home buyers. These would-be buyers (the kind who made up a good part of buyers in the real estate frenzy of the past few years) are often now renting instead."

"'There's been a tremendous surge in people signing leases,' Mr. Miller said. The upturn in the rental market makes sense, he said, because mortgage rates and rental demand correlate almost directly."

"Several new luxury condominiums are selling well, though as Pamela Liebman, the CEO of the Corcoran Group said, some 'have taken off like crazy' while others 'are floundering.'"

"The wild card right now, he said, is new construction, which developers seek to sell at a premium. 'A lot of this new construction stuff is going to have a daunting time,' (broker) Niel Binder said. Signs of scaling back seem to be manifesting themselves more in second homes and vacation rentals than in primary residences, according to Mr. Binder. 'That's were the line is being drawn,' he said."

"At a 48-unit development in the Berkshires, in Massachusetts, where he owns a condo, he said there has not been a sale all year. 'I'm trying to sell a place,' he said. 'I've owned it for 20 years and I'm going to own it for another 10, whether I want to or not.'"