Plunging prices show housing crisis’s arrival

New reports paint ugly picture: NYC property values fall nearly 25%

 

Price plunge

Manhattan: Down 19% to $1.3M

Queens: Down 13% to $403,000

Brooklyn: Down 12% to $503,000

Staten Island: Down 10% to $388,000

Bronx: Down 9% to $356,000.

 

The real estate crisis that’s slammed the rest of the country is finally catching up to New York, with home prices dropping by nearly 25 percent.

Prices on co-ops, condos and one- to three-family homes citywide plunged 22 percent over the last 12 months — down to $664,000 during this year’s second quarter — according to a new report from the Real Estate Board of New York.

“We continued riding the crest of the market when other parts of the country saw significant lows,” Michael Slattery, senior vice president at REBNY, said.

Now its New York’s turn to fall.  

Manhattan’s high-end market — which usually bolsters the citywide average — has taken the biggest hit, Slattery noted. Overall, the borough saw prices plummet 19 percent to $1.3 million. Reports from real estate firms last week also saw sharp declines in Manhattan sales prices, as well as a 50 percent drop in the number of sales.

“We’re probably back at 2006 numbers,” Slattery said.

The declines are steeper than REBNY found in the fourth quarter last year, which saw a 10 percent citywide dip from a year earlier, but marked the second straight quarter in which prices fell by more than 20 percent across the city.