Some Quietly Rejoice

Forgetting for a minute the wider implications to the economy at large if the housing bubble actually bursts, some renters are rejoicing at the prospect of housing prices coming down:

Here’s more grist for the bubble babble: Residential real-estate prices in Manhattan have been plummeting this summer.

The average price of a Manhattan apartment has dropped from $1.332 million in June to $1.145 million by the end of August — more than 14 percent, according to the latest monthly report by the Halstead real-estate company.

Likewise, the median price of the Big Apple’s condos and co-ops has dipped from a high of $831,250 in June to $725,000 in August, a 12 percent drop.

While the summer months have traditionally been a slow time for real estate, this year’s numbers have taken an exceptionally heavy nosedive.

. . .

In June, when the average sale price for a Manhattan apartment hit $1.3 million, it was a 30 percent increase over the previous year. But the August average price of $1.145 million is less than half the yearly upswing — about 14 percent — from $1.001 million in August 2004.

“The positive fundamentals are still there,” Heym said. “But people are starting to get a little nervous. Over the next couple of months we’ll see the flattening of prices, but they’ll still be higher than they were a year ago.”

Brokers are also hearing voices of concern from their clients.

“In the last week, I’ve had several sellers ask if they should lower their price,” said a Sotheby’s broker.

“At this point, I’m telling them not to panic. But it’s getting close to the point where I’m telling them they have to be flexible,” a term that sellers across the country have not had to focus on too seriously.