For the last seven months or so, brokers, developers and real estate professionals have shown up for work in Virginia Woolf-levels of despair. And with good reason: The first quarter 2009 market reports were not encouraging. Brown Harris Stevens revealed a 58 percent drop in closings from this time last year. The number of resales was down almost 21 percent, according to Prudential Douglas Elliman. The once rock-solid luxury market saw an 87 percent decline in the number of sales of properties over $10 million, reports Halstead Property. And the Corcoran Group posted a 14 percent dip in the median price of studios.
By Max Gross, April 23, 2009, NY Post

The Five Reasons are:
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