Question: To what extent does the depressed stock market impact your decision to buy a home?

i think you mean reluctant, not reticent. at any rate, i agree, i'd rather buy stocks here and not own real estate. far more likely to increase in value over next 12-18 months while real estate is far more likely to decrease in value over next 12-18 months.

If you have to sell stocks for an downpayment, your asset allocation was waaaay off the mark to begin with. Unless you had no intention of purchasing a property within five years and your proclivity to buy is a new-found desire.

Stocks are a lot cheaper than NYC real estate; they've fallen more than NYC real estate and were cheaper to begin with.

Reticent is a synonym of reluctant. The OP used it correctly.

That said, if you have paper losses on your stocks you can sell them and carry the losses forward indefinitely. There is an imputed value to that tax treatment that shouldn't be ignored.

The other thing to consider is whether apartment prices will appreciate over the short term. I don't see them doing so.