Forecast: New York metro home prices will drop another 40%

Home prices in the New York metro area, including Westchester County and northern New Jersey suburbs, could fall 40% from March levels, according to Deutsche Bank analysts. Quoting the report, said that the main reason why prices are likely to fall so drastically is that the area’s home prices are still so high.

Unlike other pricey cities, such as Los Angeles, New York home prices only began falling recently and might have a long way to go.

If this report is true, it might be time to sell your Manhattan co-op and find a nice pad in California where the housing market is probably much closer to a bottom.

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