For those New Yorkers who wondered what the Manhattan real estate market might be like without the ever-rising bonuses of Wall Street’s elite, the answer is now emerging: an abrupt decline in transactions, tottering prices and buyers who are still looking but unwilling to sign a contract. Those are some of the conclusions in a series of market reports on the fourth quarter of 2008 released on Monday by brokerage firms, appraisers and other real estate analysts. Prices on completed sales of co-ops and condominiums, some negotiated months or years ago, were flat or down slightly, but the number of completed sales and newly signed contracts had plummeted, analysts said, as the economy faltered.
By Josh Barbanel, Jan 6, 2008, NYT
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See related WSJ article: “Goldman Research Note on Valuation of the New York Apartment Market”, Jan 8, 2008 WSJ
The complete text of a report from Goldman Sachs says that condos in New York would have to shed 35% to 44% of their value to return to levels seen in the last half of the 1990s.

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