Until very recently, Manhattan real estate had been a beacon of strength in an otherwise weak housing market.
But now sales volume has tanked and prices are starting to fall along with the rest of the country. The median sales price on high-end coops and condos has fallen 20% since it peaked in mid-2008 and it could get worse. Inventories are on the rise and sellers are slashing prices but still failing to find buyers.
Real estate sales star Dolly Lenz tells Barron's that a Manhattan apartment now "has to be 25% off the last sale for it to be a bargain. People have no sense of urgency. A sense of urgency is what the real-estate market needs as a stimulus."
New York City 2010
