I've been in the market in Harlem for the last 6 months. I live here and am looking locally. Prices have been falling quite broadly with nearly every apt. I've seen posting lower prices within a couple of month. It's not at the bottom yet, and rental prices are still cheap relative to the mortgages to buy the same place. I give it another 20% further drop before any real bounce is possible.

I bought an aptartment in west Harlem six years ago and it's value recently appraised at 450% above the original purchace price.
This is not to say Buy Now, but for any one to do the research is a major key, and getting lucky helps also.
Tip of The Day=
Due to Colombia University's current and recent expansion and "land grab" in west harlem, Apt. values will never go down from 124th-136th street west of Broadway to the Hudson River. work has been nearly completed on the waterfront and 2012 is estimated completion date of the rest of billions to be spent in multi story high rises, labs, faculty housing, dorms etc etc.
Good deals either travel north in Manhattan or go to across to Queens and Brooklyn. and Williamsburg is a good example of really cheap places becoming no longer affordable after 5 yrs.
Manhattans RE bubble, at worst , will level off and stay there, sink a bit or just rise slightly in the current. Unlike the majority of the nation were RE values are a plumiting nightmare in conparison to NYC.

Lysandra,
The Manhattan market appears to be holding it's own...
Harlem is one of the hottest areas, but of course that depends on individual cases..If the homeowner over-financed they might be eager ro sell to avoid foreclosure..
Are you a buyer?
Jolie

I can't answer about home prices in Harlem specifically, but I haven't seen the subprime mortgage crisis immediately impacting prices. In my market, Orlando Florida, home prices have corrected for multiple reasons...overheated market for a few years, investors dumping property, builders adding too much inventory, and many more.

The subprime mortgage crises isn't really what I would consider a crisis...but it will add some foreclosures, short sales and other distressed sales into the inventory, which is bound to have an impact on home prices. But, the degree to which it impacts will vary from market to market.