There is no hard and fast "appreciation" rule except one in the 20 years that I have been selling.
LOCATION, LOCATION, LOCATION
Real Estate appreciates about 6% a year over a 10 to 15 year period, just not in a straight line.
Consdier that 1 year a go a person earning $260k with good credit easily could qualify for a million dollar plus mortgage. Today banks hesitate to write a mortgage for 500k, even less if the property in question is a condo.
Developers and real estate agents are employing a lot of smoke and mirrors with list prices, freebies and closing fees, but it is now impossible to obscure the basic facts- (1) Banks aren't lending (2) Wall Street $ (20% of NYC's economy) is dried up for the foreseeable future (3) Things are still getting worse.
Need further evidence that developers and agents are playing games? List prices in Williamsburg went up 4% despite the fact that the median sales price dropped by SIXTY PERCENT.
Licensed Agent - Specializing in Co-op & Home Sales
Awarded 1st Place in Sales for 2008 and 2009
Weichert Realtors, H.P Greenfield
From now on , prices are going to drop to at least 40% current asking price. In some buildings it may take longer that other, depends how much cash flow they have to hold on to their asking price, but you are going to see average prices drop every month a few percentage points.