By Les Christie
NEW YORK (CNNMoney.com) -- The Masters of the Universe have been dethroned. Now the question is just how much Wall Street's meltdown is going to hurt the city of New York and, by extension, its high-priced housing market.
Even in a city where $20 million townhouse listings don't raise an eyebrow, signs of trouble abound. Fourth quarter 2008 sales volume was down a whopping 40% from 2007 according to New York brokerage the Corcoran Group. And the average price of existing homes dropped 3.6% during the same period.
The S&P Case-Shiller Home Price Index showed a price decline of 8.6% for the New York metro area, including the city and the surrounding suburbs, for the 12 months ending November 30.