I received an email from a regular reader that informed me of a new home that has dropped in price 26% from peak pricing only six months ago. I looked into this alleged price drop and it checked out. Here is a link:
This is a development of 40 or so smaller townhomes in the eastern Fraser Valley - Chilliwack. The asking price for these townhomes in May 2008 was $269,900 and today they are $199,900 with an additional offer of special financing for the first 3 years. It appears the developer is getting eager and wants to quickly unload the rest of this project. I am certain there is a fair bit of margin for the developer to work with here but I suspect the bonuses for those working at the developer won't be gigantic this year.
This is the biggest recorded asking price drop that I have seen so far. It is no surprise that we are seeing the biggest and fastest price drops in the farther reaches of the Fraser Valley. This is exactly what happened in the other North American bubble markets only it is happening here faster! In fact, this is quickly approaching affordable levels, albeit in Chilliwack. But with $10,000 down and a mortgage / strata / tax payment of $1300 / month it is comparable to rent. Very accessible for a first time homebuyer with stable employment, you just better not have to commute further than Abbotsford!
Post your anecdotes of price drops here with the developer's website or MLS Listing number.