So AM New York says prices have dropped 20%. Really? It even says, "Behind the scenes, brokers are whispering even scarier numbers, like 30 or 40 percent." Oh come on! Sure, prices have dropped, and sure, landlords are more flexible on rental apartments, but the idea that a $1 million apartment will go for $800,000 is simply ludicrous.

That said, now is a great time to get deals - they got that right. If you were planning to buy, you should certainly do so now, and you can laugh at those who bought a year ago, or even 6 months ago.