It is not an easy question to answer. One one hand, prices may fall, but I imagine interest rates will go up. So if you are getting a mortgage in this scenario, then you will be loosing all of your tax deductions on your mortgage for not buying now and your mortgage payments will likely be higher down the road. If you are paying all cash, then waiting may make sense if you feel the market is going to come down. I know from experience that I have been terrible at predicting the ups and downs in New York and I am a smart guy with a long history in NY real estate. Good luck with your decision!

Almost all realtors will say you should buy. This is one question I would not ask them. If price your top concern, I would wait. But if you have other reasons to buy, try these sites to find out if the price is right.

http://www.propertyshark.com/mason/
http://realestate.nytimes.com/comparables/

I have bought in the exact building which you are talking about. After 6 months of research I've found that for the location, sizes, fixtures & Ammenities..this is a smart investment. With the area changing, being on a street with 2 gov't buildings, close proximity to the subway, the new East River Plaza & T subway line is the future...this is the place to make an investment. It's not the most glam neighbourhood at the moment..but it WILL change soon.

The market is insulated here. Historically, the market here has occasional dips one out of every ten years.
The apartment sounds like a great value, you need to realize that real estate is an investment over a five to ten year period.

Gerry and Gail are giving you excellent advice. It sounds like a good deal. If you need another comparison property, I have a 2 bedroom 1 bath Co-op being sold as-is for $519K in a 1904 pre-war building in the upper west side, Morningside Heights. There is no doorman, no garage and the square footage is approximately 650. This home is surrounded by historical houses of worship, colleges and universities. In addition, this Unit is within walking distance of Central Park and other major / interesting landmark attractions. Unit #32 has a new refrigerator and a full bath with 18x18 Italian Marble. There are 4 Units on the third floor. Oil Fuel, steam heat. Common charges are $444. Ask your real estate agent for a comparative market analysis to help you make an informed decision. Wishing you well on your future home purchase. Regards, C. ( http://www.TannStarr.com )

This is the time to buy...anywhere! Get a Realtor to represent you and provide comparative sales from the building and the area.

Are you going to live there? Do you love it? Yes, home purchases are an investment, but it will also be your home.

Simon, Sounds like a nice property. How about this one as a point of comparison: a beautifully renovated and spacious 3 bedroom/2 bath condo on the top floor on 112th w/views of Central Park/Empire State for $899k (negotiable)? gerardo.vazquez@prudentialelliman.com