NEW YORK, NY July 08, 2009 —New York City's real estate market continues to erode. A report by the Real Estate Board of New York, found the average price of a co-op, condo or 1- to 3-family home dropped 22 percent, to $644,000 in the second quarter of 2009.

All five boroughs showed home price drops, with Manhattan leading the way with a 19 percent decline compared to last year. There are some bright spots. The board says prices rose for condos on the Upper East Side and in Park Slope, Brooklyn.