It's Official, Prices down more than 20%

The just released first-quarter 2009 market report
confirms everyone's suspicions.

Manhattan apartment prices are down more than 20%, inventory is up more than 30%, and buyers will be holding most of the winning cards this year.

On the bright side, there was a noticeable increase in contract activity and attendance at open houses in March, a sign that first time qualified buyers are seeking to take advantage of improved affordability.

Inventory levels are up 34.3% from this time last year, but not as much as expected because "casual sellers" are not in the market like they were in 2006 when inventory levels were nearly as high. People that are listing their properties today generally want to sell.

The median sales price of a Manhattan re-sale property, defined as any property not sold in a newly constructed or converted development, fell 20.8% to $675,000 from $852,500 in the same period last year. New development prices generally reflect market conditions of more than a year ago.

Co-ops accounted for 34.8% of all sales in the first quarter of 2009, down from 44% in the same period last year, and about half the market share of the same period five years ago. The drop in co-op market share was attributable to the surge of condo new development activity, not weaker interest in the co-op form of ownership.

Click Here for a complete version of the Prudential first-quarter 2009 Market Report.