I'm not seeing that as far as purchase prices, at least not in the below-$500k market where I can afford to play right now. When I bought in 2009, my apt's value was off about 20% from peak. It's gone up about 5-10% if that.

Quite a few estate sales in the $250-$350k range right now in nice but less desirable areas than Manhattan-below-100, so I'm looking for a 2-bedroom either in Brooklyn or in the 100s above or just below Morningside Park. And also at some more fork-lost homes in NJ tomorrow (YAY!).