Get that thought from a lot of people as they just watch the surface of the market.  The answer is no it is not.  Inter year appreciation has softened but year over year appreciation is still up in the 6% - 10% range depending on the property and location.

What gives the illusion of the softening market and prices falling is the consistent over-pricing of units by either the broker or owner.  Which then leads to price cuts that most on the surface see as a softening market/or prices dropping.

For example a place on the upper west side - in need of a total gut renovation and I mean total (place was disgusting).  It was a big unit 1100sf and started at 1.29MM - so we're talking about 1180 per square foot and then you needed to renovate the whole space for a cost of probably 200 per square foot.  It was subsequently dropped in price 3 more times.  Is this an example of the market softening or just poor pricing?  I'd have to say poor pricing as in terms of units that need work, you need to include the cost of renovations into factoring a correct price.

Currently the market is very price sensitive to proper pricing and now more than ever there is more transparency in the industry with comps available on-line.