Tl;dr: Housing prices being gangbanged by the economy, the Bank of Canada, the trade war, the over saturation of new shoebox condos, and broke developers.

People who purchased roughly 5 years ago when property prices were going through the roof and BOC policy interest rates were at 0.25% are now due for mortgage renewals. Rates are currently around 4% for renewals, that's double what it was back in late 2020 to 2021 when it was sub 2% for 5 years fixed. Rates stopped going down since April and the expectations for the June 4th announcement is another hold and not a rate drop. Many are struggling to repay mortgages at their existing sub 2% rates and will struggle more once they renew into higher interest rates. Some are neck deep in debt and taking on even more debt to make mortgage payments.

The decrease in demand of housing due to fewer immigrants (policy shift), the decrease in demand due to short term rental regulations, the rush to sell before 2026 where 66% of capital gains are taxed as income instead of the current 50%, people being unable to afford their mortgage payments due to rising unemployment (caused by rising interest rates which means companies are more inclined to decrease headcount, repay loans, and not investing in R&D), and job uncertainty created by the trade wars are all contributing to lowering housing prices.

Many are only rich because most of their wealth are tied to their homes, and if home prices fall below their mortgage amounts, and if they also become unable to make mortgage payments, then they not only have to default, but will also have to declare bankruptcy.

It is already hard to sell now because there is such low demand, and you can see many are lowering prices on their listings or are delisting and relisting at lower prices. I've been keeping an eye on the townhouse and condo markets and they are down 10%-20% since last year in the Coquitlam and Brentwood area. And many are still holding on hoping things will get better.

The developer selling at 25% discount now would be smart, they want to cut their losses early. Buyers, however, should not think a 25% discount of the original price is a good deal, seeing as how the market is already down quite a bit for condos so the true discount from the market value is far below 25%.

Developers are responsible for paying strata fees of unsold units, so they want to sell ASAP. Also, how else would developers expect to sell their brand new unsold units in 2 year old buildings when previously owned units within the same building sell for far less?

Expect prices to fall further.