Reports all over have confirmed what was beginning to shape up late last year; Manhattan real estate is tumbling downward at a rapid rate. Many Manhattan based agents in the business have never seen anything like this in the last 25 years.
Prices of high end Manhattan apartments that until late last year have always withstood countrywide real estate price slumps are now coming down; sometimes by as much as 30%. This is great news for cash buyers as it puts the luxury townhouse and apartment market back on the map for many who previously couldn’t afford property in Manhattan.
Marilyn Harra Kaye, president of MLBKaye International Realty said: “I haven’t seen this kind of market since the ’70s”.
Many of the cities brokers and buyers think that the ultimate demise of well known Lehman Brothers back in September last year shook the Manhattan community; resulting in a steady price loss of real estate.
While prices fell by 4% in the fourth quarter of 2008, industry watchers predict much higher reduction of previously unsold properties. It isn’t rare that buyers can pick up a saving of around 20-25% these days.
Goldman Sachs recently reported that to return to the late levels of the 90s, condos would have to reduce prices 35-44%.
The report speculates that if incomes returned to pre-1986 levels due to the current economy, prices would need to be further reduced, up to 58%. One thing that could help to revive the falling market is a reduction in jumbo mortgages rates, according to the report.
Meanwhile buyers rejoice as they take advantage of the falling market in Manhattan.
Photo credits: Flickr