Jul 2, 2009 6:33 pm US/Eastern
Manhattan Housing Prices Continue To Drop
Experts Estimate Current Market Prices Are 25 To 30 Percent Off
NEW YORK (CBS) ―
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The current state of the economy has New York City real estate prices plummeting. (File)
CBS
The current state of the economy has New York City real estate prices plummeting.
A three-bedroom apartment on Fifth Avenue languished on the market with an asking price of $7.2 million. But after its owner dropped the price to $5.95 million, a decrease of almost 20 percent, brokers like Kirk Henckels labeled it as priced-to-sell.
"A lot of the quality on the market has sold," said Henckels, the former Vice-President of real estate broker Stribling. "But it's selling at 25 to 30 percent off. What's selling is what's priced right and in good condition."
A newly-produced report claimed Manhattan co-op apartment and condominium prices have dropped for the first time since 2002 due to the economic downturn.
The study cited the collapse of Lehman Brothers and Bear Stearns corporations as the start of the economic downturn currently affecting the Manhattan housing market.
Jonathan Miller, of Miller Samuel Appraisers, claims this includes all sizes and styles of condominiums and co-ops.
"Prices are off about 25 percent from this time last year, and the number of sales is off by half so we're seeing a much slower market with people having more difficulty getting financing," Miller said.
The Miller Samuel report showed the largest percentage drop occurring in the most expensive group of apartments, with four-bedrooms plummeting by 47 percent to a median of $3.92 million. The company also found two-bedroom prices fell by 23 percent to $1.27 million and one-bedrooms dropped 17 percent to $650,000.
Miller added prices could get even lower.
"I don't think we're at a bottom," Miller said. "Unemployment is rising; we're still in a recession. It's a little bit early to say if housing has turned a corner. It's going to be measured in a couple of years, not months or quarters."
But Henckels cautioned New Yorkers looking to purchase against rolling the dice and waiting for further price drops.
"No one ever exactly hits the bottom of the market," Henckels said. "That's more luck than smarts."
(© MMIX, CBS Broadcasting Inc. All Rights Reserved.)
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