Remember, nothing this good lasts forever so don't miss the boat, jump on and ride the wave while you still can.
As a seller, I can tell you that I (and many other sellers, I imagine) will lower our price only so much. I think many people would rather take their property off the market, do some renovations, or a combination of both to keep their asking price, rather than lower it beyond a certain point. Or they may sublet it until the market improves. True, some sellers have unrealistic expectations, but I think most people do their homework, they know what the average asking price is in their neighborhood, and the average income, and they may lower it so that they're in that ballpark. Maybe you'll find someone desperate to sell, but I don't think that happens quite as often as buyers think or hope. So judging from a psychological perspective, I don't think prices will continue to drop. This is NYC, after all, and although prices MAY keep going down, you will never pay for an apartment in NYC what you would pay for it in another city or state. You can drive yourself batty thinking about what prices may be two years from now, or what they were five or ten years from now. For example, I remember when 1-bedroom coops in Clinton Hill were $75,000-$85,000 in 2001 (that's right, that's not a typo), and then they were selling for $399,000 in 2005. I suggest you live and act in the moment. If it's a good deal, take advantage of it.