As the luxury housing market in Manhattan continues to fall as a result of layoffs on Wall Street and the tight credit squeeze demand, housing prices could drop another 30%. The 20 Pine area is no exception. This area was once a symbol of the post-9/11 Manhattan which sprouted luxuriously designed homes including oversized windows, exotics wood and silent shower heads. With the Manhattan housing market in a downward spiral, 20 Pine may just fall victim to NYC’s luxury-housing crisis.

Another prime example of the Manhattan luxury-housing bust is a 409-unit building from the Boymelgreen Developers. Reports indicate that these luxury units are going for just $652 per square foot, which is nearly half of their current asking price. Manhattan apartment mega broker Michale Shvo does not seem too concerned with this report, though.

Manhattan is not the only area to see such a downward spiral in the luxury housing market. Miami, Vegas and Phoenix have all fallen victim to this crisis. With layoffs and big-ticket mortgages running out, luxury town homes and apartments in Manhattan that have once retailed for more the $5 million dollars are now being sold at a discounted rate of 30% off. As the NYC job market continues to lay off, investors are laying off the house shopping and so are potential buyers.

With an economic downward spiral comes the attempt to salvage. Take a 14-room Park Avenue unit that once belonged to the lat NYC socialite Brooke Astor; the price has plummeted from $46 million to $34 million to $29 million and will likely see another drop in price before it is sold.

Another prime example of trouble can be found on Streeteasy.com. This website has compiled a list of nearly 795 New York City apartments with a price of $5 million or more up for sale. Just a year ago, there were only about 518 apartments on the NYC market. With the economy and job market, many potential buyers are leery of signing any papers that make a commitment to buy luxury real estate. Sales in luxury housing dropped nearly 40% in just one quarter alone.

The thing to remember when considering any luxury investment, whether it’s Manhattan luxury apartments or Chicago luxury real estate, is that prices do vary. You can go from $1 million to $65 million dollars easily. As the economy starts to look up, the heavily discounted New York City luxury apartments are likely to become scarcer. Prices may have fallen but they are likely to stabilize. This is just another example of life in the hustle and bustle of the big city.