Housing Slump Begins To Hit Manhattan & The Hamptons

# While sales have picked up a bit in some suffering housing markets in the West, creating a glimmer of hope that home prices nationwide may be approaching a bottom, the Manhattan real estate market has just begun a steep slide. It parallels the decline in New York’s financial services industry, and housing analysts say it may continue long after other markets heal.
# Apartment prices have once more become the talk of the town in Manhattan, but this time the talk is of uncertainty and falling numbers. While brokers say they are seeing more activity lately, especially from first-time buyers taking advantage of lower interest rates, housing analysts are predicting a prolonged slump in prices and sales that could last as long as four or five years.
# In this year’s first quarter, sales of co-ops and condominiums in Manhattan plunged nearly 60 percent from the first quarter of 2008. Average co-op prices fell as much as 24 percent in the same period, according to various market reports released last week.
# Condo prices have held up so far, but only because buyers who went into contract long before the downturn were closing on newly completed condominium buildings. But now few new contracts are being signed on unfinished condominiums, and some buyers have been renegotiating contracts or are trying to back out of them. Co-ops and condos make up 98 percent of the residential properties for sale in Manhattan.

As Some U.S. Markets Level Off, Housing Slump Hits Manhattan

Apartment prices have once more become the talk of the town in Manhattan, but this time the talk is of uncertainty and falling numbers. While brokers say they are seeing more activity lately, especially from first-time buyers taking advantage of lower interest rates, housing analysts are predicting a prolonged slump in prices and sales that could last as long as four or five years.

In this year’s first quarter, sales of co-ops and condominiums in Manhattan plunged nearly 60 percent from the first quarter of 2008. Average co-op prices fell as much as 24 percent in the same period, according to various market reports released last week.

Condo prices have held up so far, but only because buyers who went into contract long before the downturn were closing on newly completed condominium buildings. But now few new contracts are being signed on unfinished condominiums, and some buyers have been renegotiating contracts or are trying to back out of them. Co-ops and condos make up 98 percent of the residential properties for sale in Manhattan.

Prudential Douglas Elliman Manhattan Real Estate Market Overview For Q1 2009

The number of sales declined 47.6% to 1,195 units from 2,282 units in the prior year quarter and down the same amount from the prior quarter. The market share for the number of re-sales has been declining over the past year as compared to new development sales. Re-sales accounted for 57.2% of sales this quarter, down from 69.5% in the prior year quarter. As a result of the lower number of sales, inventory levels have increased, but not as rapidly as other periods of lower activity.

There has been limited participation by "casual sellers," owners who place their properties for sale only to test the market, have opted to wait until conditions have improved. Listing inventory reached 10,445 units at the end of the quarter, up 34.3% from 7,778 units in the prior year quarter and up 15% from 9,081 units in the prior quarter. Inventory levels are at their highest in the decade this metric has been tracked. The prior high was set in the third quarter of 2006 when inventory reached 9,573 units.

Sliding Manhattan home prices give sellers shivers

NEW YORK (Reuters) - Consider apartment 13C at 730 Park Avenue on Manhattan's storied "Silk Stocking" district. It has seven rooms, a fireplace, excellent nearby schools -- and a price that has been cut 46 percent.

The tale of 13C illustrates a role reversal of sorts underway in Manhattan real estate.

Sellers of property have called the shots for years on the 22.7 square mile island that is the financial capital of the United States. But now buyers are having their day, according to the first-quarter reports due from major real estate brokerages on Thursday.

In the fourth quarter of 2008, for example, resale median prices in Manhattan fell 9.5 percent for condominiums and 5.2 percent for co-ops compared with the third quarter of 2008, according to real estate website StreetEasy.com.