Yes it's true, people aren't buying properties at the same intensity and pace that was happening in the last few years....it's almost like a war of wills between sellers and buyers, which may explain the dramatic increase in rents. (It's definitely a good time to be a landlord, the demand is high and the supply is low). As for the sales market, sellers are aware of the market changes and should be pricing their properties accordingly. Yet, it doesn't appear that the purchase price is the only factor affecting the market. Another factor is the higher supply of property to choose from. Thus allowing buyers to take more time to shop around before they make their final decision. You also have more concern about the future of the market as to what the value of the property will be 6 months to a year from now. From a stepping back and watching the market change from a distance, it almost seems like a distant dream that people were fighting each other to purchase condo's that were priced much higher than their value today. Yet, you can not under estimate the herd mentality in real estate pricing and also have to have confidence in the fact that the forces that drove prices up only 2 years ago are still relevant today. There is a tremendous demand to live in the New York metropolitan area, there is still an abundance of people looking to buy property in Hudson County and a temporary lull in activity only adds to the pent up demand when consumer confidence increases.