Yes, it has really started to happen. Prices are starting to fall, sales are down, and everyone is getting nervous. Here is a story from the BBC, looking at apartment prices in the North.
Big fall in some apartment prices
Significant price falls in a number of new build apartments in Manchester, Birmingham and Leeds have been uncovered by a BBC series on property. In one apartment block called Aspect 14, on the edge of Leeds city centre, one owner has lost as much as £85,000 on a flat in 18 months. Others have seen the value of their apartments fall from £189,000 to £131,000 in two-and-a-half years. The majority of the last 10 sales in the block have seen significant losses.
In Birmingham, apartment blocks that have seen price falls include The Royal Arch Apartments on Wharfside Street and Centenary Plaza on Holliday Street. There, one owner lost more than £50,000. Other flats in the blocks have gained value, suggesting it depends very much on which flat you buy in a given block. In Manchester, Blantyre Street apartments have seen a reduction in some sale prices, by as much as £40,000, as has Deansgate Quay.