Manhattan Teeters on Brink of Housing Crash

By Jess Kilby, Newser User

Posted Jun 15, 2009 5:23 AM CDT

(Newser) – As foreclosure sales begin to lure buyers back to the housing market in some parts of the country, realtors in New York are finding the market crisis has come home to roost, Reuters reports. Things are bad and could soon be much worse. Condo sales in Manhattan have plummeted 71% from a year ago, with a glut of new units priced way above market.

"You're not going to outsmart the market. You have to give buyers what they want,” said one marketing director, who advised a developer client to negotiate price cuts with its backers before putting units back on the market. Other developers are hiding cost cuts by including perks like extra storage. "They just don't want to look like the prices are going down," said a broker.

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High-priced condos in Manhattan aren't selling now that Wall Street execs lack the bonus pay to buy them. (AP Photo/David Goldman)

High-priced condos in Manhattan aren't selling now that Wall Street execs lack the bonus pay to buy them. (AP Photo/Ed Ou, File)

Things are not looking too shiny in the Big Apple. (©montpelier)

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If you have a property not priced at market, is it going to sell? Something has to give.
- Jonathan Miller, author of real estate broker Prudential Douglas Elliman's market reports

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