"A 'slight dip'?? You have GOT to be kidding! The last time the Manhattan real estate bubble deflated (1989-93), prices fell by about 30% on average. The main difference now is that there is a LOT more new construction in the pipeline than there was then. Also, condos account for a much larger share of the market now than then--and it's MUCH easier to get a questionable loan for a condo than for a co-op. Be careful what you wish for. Keep in mind that prices have roughly doubled in the past 5 years, so even with a 40% drop, they'd still be up about 20% from there. And once prices start falling it will be the foreign buyers (speculators) that rush for the exits FIRST. Just look what happened in Florida." ["Panic Is Fun! First Bear Goes, Then Lehman, Then Condo Market?"]
Next Stop Florida?
Copyright Obser - Observer