Spec-Builders Feel The Heat - When Escaping With "A Small Loss" Is The Same As Having "Won The Lotto".

Spec builders have become aware of the slowing market. This from Bob at Vancouver Condo Info July 4th, 2008 at 10:35am -

“In Abbotsford I’ve heard from two different sources that there’s a developer.. that just dropped the prices on his new houses 70-80K to $499,000.”

And franko (July 4th, 2008 at 12:28 pm) adds the following -

“As an ex-spec builder who keeps in touch with the gang that’s still active, let me assure you that the same thing is happening in Coquitlam and on the North shore. During the last coffee break with a bunch of builder buddies, I learned that most of these guys are not proceeding with new projects and are letting recently acquired permits expire. Unlike developers of large multi-unit projects, that could take a couple of years from commitment to completion, small-time house builders sometimes have the advantage of bailing out at the first sign of trouble. Although most of these guys with unsold new houses are scared $hitless as not even price drops are generating much interest, one of the guys FINALLY had the subjects removed from a recent sale that enabled him to escape with only a small loss…or so he claims. Anyway, this guy was so happy, you’d have thought he just won the lotto. Needless to say, he sprung for the coffee and doughnuts.”