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Fortune: NYC Market Will Have Double-Digit Fall

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Last week, Fortune magazine unleashed a wide-ranging story on where the real estate market is headed in every major market in the country, and?surprise, surprise?the news ain't pretty. The numbers were calculated using various price/rent ratios and 15-year averages and forecasts and Magic 8-Balls, and in the end, the study says huge double-digit drops are coming. But what about our impenetrable New York? Mayor Bloomberg said a little while back that he expects prices to fall, although not as bad as the rest of the country, and Fortune agrees. They predict a 14% drop, far less harsh than some other metropolitan areas. According to the handy chart, this means the median price would fall from $1.1 million to $950,000 over the next five years. That's not too harsh, but will it happen? At least last month, there were no signs of a slow-down of any sort. And until that foreign cash dries up, prices seem headed in only one direction.
· Real estate: Buy, sell, or hold? [Fortune]
· Where housing is headed [Fortune]