Homeowners in the New York area should brace themselves for more bad news in 2006, with lower sales prices.

The city's metropolitan housing market — including nearby suburbs in New Jersey and Westchester County — will experience a 2.3 percent price dip this year, according to Fiserv Lending Solutions, a major mortgage lending company. The forecast follows a previous 16.6 percent gain from the third quarter of 2004 to the same quarter in 2005.

In New York City, Mayor Michael Bloomberg predicts an even more dismal scenario for his constituents. The mayor's numbers crunchers expect home prices in Gotham to dive 10%.
New York Post, February 7, 2006