Judging by these figures, even Manhattan is starting to feel the pinch. This means it's a pretty bad time to buy Manhattan real estate, huh? Not exactly...

The current financial climate is bad for builders...

Inventory is piling up. Buildings are hard to move. There's little urgency for new buildings. Loans are becoming a real sticking point. Buyers with serious money are getting, well, picky!

...But good for buyers!

Here's why this might turn out great for buyers. Closing prices may have fallen by as much as 10% over the past year (if we factor out a few massive deals that threw off the numbers). Makes a big difference when we're talking about Manhattan co-ops, notorious for high closing costs. Sellers are eager to negotiate. Sellers need to sell buildings... and right now is your chance to get a good deal. They're more willing than ever to do what it takes to make sales. Mortgage rates have plummeted... That one explains itself. Now's the time to take advantage. Despite the economic turmoil, Manhattan real estate is still a smart investment. Why? Well, as the economy turns around, Manhattan real estate will rise again. Say Manhattan regains (a very realistic) 10% in the next 5 years... that's easy money.