I heard all the time from the pseudo experts. Oh not Manhattan, the foreigners will still buy here and keep the bullish -overly pricey Manhattan real estate boom going on in perpetuity. Today the Daily News reports it is down bad and deal are going south. http://www.nydailynews.com/real_estate/2009/07/02/2009-07-02_manhattan_apartment_prices_deals_off.html
It is common sense that what happened on the West Coast would occur here. This is just the start of the correction. The combination of loss of Wall Street jobs, and the support jobs that go with them were bound to hit the real estate market.
The Case-Shiller index reported some slow down in national home price declines but they cautioned it’s too early to tell. See the Wall Street Journal coverage http://blogs.wsj.com/developments/2009/06/30/beware-of-a-double-dip-case-shiller-decline/
I have traveled for several years to the West Coast San Francisco and saw the pre-cursor to New York. In California the decline was significant and the reality was the collapse of some of the high tech industry which supported high levels of real estate demand which caused prices to increase. Here in New York, the same is true of the Wall Street and Banking industries which increased demand and pricing.