Fearless Predictions for 2009!

Not that it should come as too much of a surprise, but Manhattan apartment prices are headed south, and will likely continue to fall in early 2009. The U.S. economy shed over half a million jobs in November, the largest one-month loss in over thirty years. Moreover, a significant portion of these job losses have, and will continue, to take place in Manhattan. New York-based Citibank alone is slashing more than 50,000 employees. The increased Manhattan job losses will likely lead to an increased number of new apartments hitting the market, the first large wave set to take place right after the New Year. Inventory levels have been climbing steadily throughout 2008, as more and more buyers remain on the sidelines, fearful of the declining economy. Reduced demand and increased supply does not make for a healthy real estate market in 2009. All told, Manhattan apartment prices may decline by as much as 20% to 25% from the peak pricing in the second quarter of 2008.







If you need to sell your apartment within the next year, you should get it on the market as quickly as possible before the inventory stampede hits full force. It would also be smart to price it somewhat below the available competition to get offers. If you bought your apartment more than two years ago, you will still be well positioned to make a nice profit. In the meantime, buyers will be in a much better position to purchase the home of their dreams in 2009. Prices are falling, and there will be more apartments on the market to choose from. But, if you keep waiting for the perfect time to buy, you will never buy! Not only will you never overpay, but if you never buy, you will never own something!