The values of Manhattan co-ops and condos have declined 21 percent since the market peak. Compared to a year ago, median prices have fallen 10 percent to $810,000 in the fourth quarter, according to appraiser Miller Samuel Inc. and Prudential Douglas Elliman Real Estate.

At the lower prices, sales jumped 8.4 percent above the 10-year quarterly average.

Jonathan Miller, president of Miller Samuel, predicted that prices would continue to fall driven by the 10 percent unemployment rate in New York City.

Miller Samuel and Prudential also reported that the number of apartments for sale has dropped to 6,851 in the fourth quarter, about 25 percent lower compared to the previous year. The 10-year quarterly inventory average is 7,094 units. Miller said the decline in inventory is an anomaly brought on by the wave of buyers attracted by low prices and tax credits.

Source: Bloomberg, Oshrat Carmiel (01/05/2010)