Manhattan Real Estate Prices Starting to Decline-New York

According to the Wall Street Journal, New York City real estate as a whole is down ten (10%) . S&P/Case-Shiller Home Price Index, reported in WSJ today.

Can we expect that trend to continue– probably, for three primary reasons. First, Wall Street executives and traders are taking a financial bath. According to the article, job losses on Wall Street (which employed 15.7% of Manhattan’s workers) will impinge on their average salary ($269,000-2006) causing their stiff down payments to suffer as bonuses are slashed and the subprime mortgages cause the stock options to plunge and the pink slips to issue.

Second, as the mortgage crisis deepens, access to credit is going to tighten.

Third, as the US dollar strengthens, Western Europeans are going to stop dumping their Euro’s in the NYC real estate market.

The bottom line– perhaps some of us mortals will be able to afford some of these coops and condos soon.