When economists look at the American housing market, they put a big asterisk next to Manhattan. In the past, Wall Street bonuses have helped to shield property on the island from softening demand elsewhere in the United States.

However, after the recent slide on equity and debt markets and the growing risk that a number of corporate deals and floats may be delayed after such volatility, real estate brokers are nervous about a drying-up of demand.

Robert Shiller, of Yale University, draws comparisons between the New York and London property markets and points out that “Manhattan is stronger than most other places in the US – and much of this is to do with the record bonuses from the financial community”. During the second quarter of this year, New York City posted record sales and prices.

Dolly Lenz, vice-chairman of Prudential Douglas Elliman, the biggest property company in New York, said: “It’s unusual that it’s affecting confidence in the very high end of the market.” She said that she had seen less interest for top-end properties - those valued at $5 million [£2.5 million] or more - in the past few weeks.

BACKGROUND

• Elephant slumps in wake of crunch

• Heads on the block, investors call for change

• Credit crunch forces Delek to leave property deal

• US rate cut looks certain after new data

• Bank of America to axe 3,000 after 'our errors'

BACKGROUND

• More pain for private equity industry

• Russian state bank poised to boost liquidity

• House prices‘to stay flat for years’

• Will soaring oil pump up inflation?

• US bank slump goes on

Black clouds loom on horizon

For the first time in 15 years, I am seriously worried about the outlook for the economy, the housing market and sterling

Float on the job market

Don't believe the scary headlines. It's not the worst time to consider a career in banking

Related Links

• If you thought it could not get any worse...

• Tremors may reach as far as the White House

• US lawsuits could cost London insurers

Suzanne Brose, of the property group Custom Brokers, said: “I have had a number of customers calling, who are about to sign or are in the middle of going through contracts, asking me: ‘Do we need to worry?’ ”

Times Recommends

• Lies and cover-up at MG Rover exposed by report
• High oil prices push manufacturing costs up
• Primark founder steps down as chief executive