HOME-WRECKED

As home prices across the nation dropped more than they have in a decade, the often-sizzling New York real estate market is bracing for a chill.

The median price for a home in the United States fell to $225,000 - down 1.7 percent from August of last year, according to figures released yesterday by the National Association of Realtors - the first time in 111/2 years the market has had a year-over-year decline.

In New York City, where the median price for a home at the end of June was $474,000, a steeper drop in home values is expected.

"Higher-priced markets are seeing larger declines," Lawrence Yun, an economist with the National Association of Realtors told The Post. "People just cannot afford them because they've risen so much in places like New York."

Already, local real estate brokers say, the glittering new condo developments springing up around the city are seeing a sales slowdown, and are considering shifting gears to become rental towers.

The nation's slumping housing prices reflect the pace of existing home sales that fell for the fifth-straight month in August, slipping 0.5 percent to a seasonally adjusted annual rate of 6.3 million units.

"Price drops are very unusual," said Yun. "Nevertheless we have been anticipating the softness in prices and for prices to actually turn negative given the significant run-up in inventory."

New York prices could go down about 5 percent from a year ago, Yun said, adding the slump will continue until the spring or summer.