"I think that it will take at least a year for prices to start to skyrocket again."

Glenn, do you know its rare for prices to skyrocket at all? Every sizeable jump historically has been due to a fundamental change in the mortgage/housing market. The most recent was utter bull**** loans. Prior to that there was the creation of Freddie and Fannie etc. Manhattan had a 0% appreciation for a 10 year period from the mid 80s to the mid 90s. Given the insane runup a repeat of that is far from impossible. When manhattan recovered, it sputtered along for a couple of years before starting to skyrocket, so banking on another skyrocket is a serious gamble. Like betting on a single number in roulette gamble.

Alen, you said, "I love how renters always say that buying is never better than buying". Having spent a long time on these boards, I don't know many renters who say this. I actually don't know any renters that have said this. Who are these renters?

I think that it will take at least a year for prices to start to skyrocket again. It all depends on where the property is, how much inventory there is in the neighborhood, condo/co-op, etc. Condo inventory is starting to dry up again due to the huge influx of European buyers...the dollar is weak and they are starting to snap up apartments. Check out how long the apartment has been on the market, the financial status of the building. If work needs to be done, don't get upset...this usually means you have more negotiating power. Also, have your mortgage pre-approval letter in hand when ready to make an offer...sellers are being very wise now and asking for no-mortgage contingency contracts because banks are being a bit difficult in lending...they are requesting a lot more documentation and checking buyers out more thoroughly. This is the only thing that has softened the NYC market a bit, more difficult lending policies...caused by the the lenders poor decisions around the rest of the country!

I love how renters always say that buying is never better than buying, yet some of the wealthiest people in this country are Real Estate Investors. Buying on average is a better option to take over renting. The problem many people face when it comes to purchasing a house or an apartment is not having enough cash to put down, and if you are buying into a coop you will most likely need additional cash in the bank after you close on the deal "just in case you can't afford to pay for a year or to of mortgage plus maintenance".
Sally, for you it will also depend on which area in Manhattan you are buying into, for example Upper East Side was recently rated as the top neighborhood to live in. Great investment area, West Village is hot, Tribeca, Chelsea, Meatpacking with HighLine, along with few other areas. The apartment which you are looking to purchase, 1.75 M, check if thats what other apartments of that size and lay out are selling for in the same building or the near by area. Many sellers are unrealistic even in this market and will try to overprice their properties, you should always look at compatible apartments sold in the past 3 to 6 months. Many of the listings are selling 3-4% below asking price.
If you are in a prime area, in a good building, with a great floor plan apartment, nice layout, good light, hopefully good views, stick with it for a minimum of 4 to 5 years before you try to sell it. Don't try to always look at a home as ONLY an investment, you will have to live there for many years to come and enjoy it. Consider that first and also the investment aspect of the property.
Btw where is it?

Best of luck
~Alen

If you paid 1.05 mil for the apt, and found a 30 year fixed mortgage at 6% (impossible for this size but whatever), you're mortgage + interest + common charge would be $6500. Put that in a buy/rent calculator. i did it in NYTimes with their default assumptions, answer: Buying is never better than renting over 30 years.

http://www.nytimes.com/2007/04/10/business/2007_BUYRENT_GRAP…

Wait. Prices may be cheaper next year.