that's not true… if the "market" is to be believed, many people would buy those condos, just not at the current price

if the current bag holder (some company) takes a bath of these, so be it… the entire market would not collapse and I guarantee you the rest of the bag holders will adjust, if only temporarily

what seems to be happening here is that we buy these overpriced condos to sell them at a loss … the greedy companies keep fattening and we eat the market correction

History proves otherwise. Housing prices can come down significantly, and developers can go under, without it destroying the whole system.

What you generally need for that to happen, is high unemployment (leading to foreclosures), or developers going bankrupt on unsold, but constructed, condo stock piles (again, leading to foreclosures and forced sales).

You saw the start of it in Vancouver, with housing prices coming down the past few years -- and with developers finding increasingly 'creative' ways to bundle and sell their unsold stockpiles. Bailing out those developers just keeps housing unaffordable.

Like here, think of it this way: when you buy a home, you need 20% down payment these days. That means your property value could go down by as much as ~15% and the bank won't care. If you're in a forced sale position, the bank just needs to recoop its loan value -- so even on a new loan, they'd potentially accept 15% below market value if there were no other bids. All that can happen, with the bank/financial system being kept whole. So you "could" see real estate bagholders get fucked out of up to 15% yoy losses, basically, and the system would be fine.