noticing lots of recent price drops?

I haven't seen many at all on the properties I'm tracking. If anything, I've noticed that properties seem to go into contract faster, so no chance of price cuts. Maybe sellers are more amenable to offers made, or maybe offers are closer to ask? We'll see in July.

I've seen very sensible pricing in the upper west side area and parts of downtown but not as a rule. The upper east side has a ways to go. Lets not even talk about Harlem or the financial district.

Hmm I think that explains my observation bias: I pretty much only save properties thare priced somewhat correctly. People who come on the market thinking it's still 2007 are not really serious. I catch them if they come down to a reasonable level if and when they relist, I guess.

That's a good point. If you slightly expand your search you will probably see more apartments, especially those that are overpriced.

What's odd is that I've seen apartments first listed in late 2009 coming back on the market at HIGHER prices. Some sellers seem to think the market is getting stronger. Will be interesting to see if the new higher prices get dropped in the next few months.

In Greenwich Village prime, I don't see nearly as many price reductions as a year ago. Very few in fact. And many properties that are not "aspirationally" priced are selling fairly quickly.

Urbandigs charts suggest there is no uptick in price reductions lately either. Overall, the market is stronger than a year ago it seems in terms of properties moving to contract and fewer price reductions.

Don't get me wrong--plenty of stuff continues to linger on the market and undergo numerous price reductions. But I think those are properties whose owners have resisted acknowledging they cannot make a profit on an apartment they purchased in 2006/7.

well, fewer reductions because stuff starts lower now...

Great points kyle. It seems that people know that buyers have an idea in there mind of what is acceptable to pay. Of course, we've all seen the stuff that just sits on the market due to a high price.

I've seen a lot of the following kinda stuff:

2006: apt purchased for $1
January 2010: apt now being sold, ask price $3
April 2010: ask price reduced to $2

So, price was reduced $1, but it's still $1 over the 2006 price, so IMO, it's still too high

"it's still $1 over the 2006 price, so IMO, it's still too high"

...2006 prices were already too high. It's no wonder so many apartments closed at 2004 prices during 2009-2010.

We're not in 2006 (or 2004) anymore. Back then, we had jobs, less maintenance, less taxes, lower mortgage rates, plenty of lending. Same apartment now should cost much less than 2006, and less than 2004, in order to make sense to buy vs. comparable rents.

"Same apartment now should cost much less than 2006, and less than 2004, in order to make sense to buy vs. comparable rents"

Please tell it to the sellers. I am looking for an apartment with good south or west view and a balcony, and I rarely see any that would even go down to 2007 prices. Let alone 2006-2004. Most stay at 2008 price level, and very few are willing to really negotiate.

nyc9 I am with you. Have slowed down on my looking. I may rent for a few years.