I've Heard This Story Before

It appears that the top of the Manhattan real estate market is in retrenchment mode:

Luxury homes in Manhattan are selling at the biggest discounts on record as owners grow tired of waiting for buyers to match their price.

Homes priced at $4 million or more that went into contract in the first 12 weeks of the year had their asking prices cut by an average of 10 percent, the most in data going back to 2012, according to Olshan Realty Inc. Final sale prices, which won’t be known until the deals close, will probably reflect even greater reductions, said Donna Olshan, president of the brokerage that compiled the report.

“Most things at $4 million and above are selling 15 to 20 percent below the original ask,” Olshan said. “It’s a data point that screams: The market is overpriced!”

Owners who prevail in selling their homes are conceding that Manhattan’s luxury market is brimming with choices, and that even well-heeled buyers are sensitive to price. Shoppers with cash are no longer bidding up properties to record levels, and sellers who recognize the new reality are the likeliest to succeed, Olshan said.

If things are bad now, what happens when there is crack-down on money laundering?

Also, what happens when banks start getting burnt by this?

Two words, "Lehman Brothers, 2008."

OK, that's two words and one number.