Emerald City Enema

AM New York reports: Manhattan home sales plunge.

With Manhattan real estate prices now estimated to be down by as much as 20 percent since the summer, New Yorkers may sense an opportunity to buy in.

In fact, the current edition of the Federal Reserve Board’s Beige Book – an economic snapshot of various regions released eight times a year – paints a picture of a plummeting market.

“Transaction activity has dropped off noticeably, and there has been a large increase in the number of listings,” says the report, released earlier this month.

The beige book findings are based on an analysis by real estate appraisal firm Miller Samuel.

“It’s basically our observation that something that contracts today is selling for 20 percent less than something that was contracted for this summer,” said Jonathan Miller, the company’s president.

He attributed the drop to a lack of available credit and the implosion on Wall Street, which has left many without year-end bonuses.

Lockhart Steele, the founder of the real estate Web site curbed.com, said 20 percent might even be too low.

“Behind the scenes, brokers are whispering even scarier numbers, like 30 or 40 percent,” he said.

Hasta luego, suckahs!