new construction - people walking away

I did this in 2008. That is, after much contemplation and legal fees, I forfeited my deposit. Three years later in 2011 I bought a condo when when prices dropped. I don't think there will be a mass exodus at the lower price points as we saw in 2008. But there may be some abandonment at the highest end (they can afford to walk away from hundreds of thousands).

Haven't heard this yet , let us know when you have some data to support this

There are different reasons buyers chose to walk away from their deposits. Sometimes like in 2008 and 2009 buyers were losing jobs, and couldn't afford to move forward with the apartment as they needed the cash in the bank to support themselves and their family. In other circumstances, the market changes and what you locked in for the contract is now not the current value of the apartment and the buyers would be in an underwater mortgage--meaning they owe more on the apartment than the apartment is worth.