i'm a bit confused. from reading some of the answers below, it seems that the price of $400K is considered high. i'm also looking for a condo in sheapshead bay (3 bedroom, though), and the prices i'm seeing are nowhere close to 400K! am i missing something?

I live and have an office in Sheepshead Bay. While I personally think 400k is wayyyy too much to pay for a condo, I dont see the area as a declining market. Perhaps you should try another agent, as in my personal opinion, many (not all) of the agents in this area started working approximately 13 days ago.

brooklyns market really cant be ocnsidered a declining market....sheepshead bay is riddled with affordable condos. My agency is the exclusive agent for a brand new development called bay breeze, it is located on emmons avenue and is near everything. If you'd like to see some of these properties please call me my name is Lou Belisario I am from Fillmore Real Estate and my number is 13477023316

The Fannie Mae "declining market" status was eliminated on June 1, 2008. Here's the website:http://www.fanniemae.com/newsreleases/2008/4370.jhtml?p=Medi…
While private lenders have the ability to promote the declining market status, do some shopping around for a lender that is current, and a real estate agent that has visited this site. Best to you-

Hey Tony,

If you want Sheepshead go for sheepshead bay, I am a Realtor from Staten Island, but before anybody says that I have no clue about that area, I would like to add, that I am originally from Sheepshead bay and intimately know the area. I have no idea what those brokers are telling you, that area is undergoing a dramatic change, and rather than being a declining market, it is a market that is reaching places like downtown Brooklyn. Condos are popping up and down and they are apparently selling. In my experience, and I will research out that for you, I don't think it matters whether it is a declining market when it comes to the amount you put down. I am also going to call up some condos around the area whether it matters to them about this issue at hand.

If you have any questions dont hesitate to contact me at my office
Caesar Galindo
Prosperity Real Estate Group
(718) 698-2179

Not that its relevant to the question but Sheepshead Bay is one of the most convenient neighborhoods in Brooklyn. Its 45 min away from midtown, it has all the amenities, stores and recreation as well as being one of the safest ones.

Why would you want to buy in Sheepshead Bay for this price? Buy in Fort Greene, Park Slope, Carroll Gardens, etc.