Long Way Down for NYC, Boston Home Prices

Cities can't buck market forces forever
By Kevin Spak,  Newser Staff
Posted Dec 31, 2008 10:02 AM CST
Real sate agent Donna Spafford changes flyers advertising home sales on display at Real Estate West office in Manhattan Beach, Calif., Tuesday, 24, 2007.   (AP Photo/Kevork Djansezian)
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(Newser) – New York, Boston, and Charlotte, NC, are at the center of the financial industry, but so far those cities haven’t seen home prices plummet the way they have in the rest of the country. New York’s single-family-home prices are down from their 2006 highs, roughly half the decline in the overall S&P/Case-Shiller index. But those cities can’t buck the trend forever, the Wall Street Journal reports, meaning prices have a steep drop ahead.

In the country’s hardest-hit areas, prices have fallen enough to bring in buyers and clear the market. Areas like Phoenix, where prices have fallen 41%, may be nearing a bottom and poised for recovery. But New Yorkers remain reluctant to sell for less than their neighbors, keeping prices up and buyers on the sidelines. “I haven’t seen any steep lowering of prices,” says one home shopper, who’s resolved to wait until she does. (Read more New York real estate stories.)