Of course, now we know 3 years down the road that the bubble has burst, and that 350k for what you described was way way overpriced. Already in '07 we could see that such prices were unsustainable. So if you're still reading this, I hope you didn't ever buy that apartment!
I live as a renter in a row house on Walton Avenue (in 10451), in a house an acquaintance bought 2 years ago for over 400k, and put money into fixing it up very nicely. But I see now houses on the same block, and on East 150th, being offered in the mid 300's, with foreclosures here and there, and still stay on the market for a while.
The way I see it, prices will continue to trend down into 2011 and 2012, and now with Gateway Center being fully open and maybe other improvements on the way, that may be a great time to buy something in this area...