Deal... or No Deal?

Due to the underwhelming success of the auction at Reflections in Langford, they have again lowered prices. This time, they are following the cues of Finlayson Reach and St. Andrew's Walk by chopping their prices by up to 40%. Good discount, but are they now good prices? What is the fair market value?

Some feel that fair market value is equal rent to ownership costs. I'll go with that. What would a 1 bedroom and den unit at Reflections rent for? Maybe $1100 / month? Strata fees and taxes for that unit would be maybe $250 / month. Subtract those from the rent = $850 / month mortgage payment. Today, you can get a 5 year fixed for 4.09%. With a 35 year amortization, you'd have a $180000 mortgage. Of course, you'd still need to cover a down payment and other associated fees (CMHC, property transfer tax, etc). The cheapest unit advertised is still $199000. That price is close, but still too high.