I had a past client who got out of his builder contract last year. Most builder contracts don't give the buyer much protection at all. Well that's done now.
Look for a clause regarding expected delivery date. Seems to me a long time has past since you signed that contract. Consult a real estate atty to see exactly where you stand. There is something called ""reasonableness"" I don't know the specifics - consult an atty. You have two options depending on the strength of your position. You could either simply demand your deposit back if your position is good - OR - take a more subtle approach and talk to the sales rep. If he/she knows that you've sought legal advice they might be willing to negotiate a lower sales price for you--- then you could still have the new condo you want & the new 2007 lower price tag.
Sometimes you can have your cake and get to feast - just takes a deft & subtle hand------
Just a thought...
PS: Eventhough the appraisal idea presented earlier seems logical - if you used the builders lender (and got the discount) it will probably appraise as needed anyway - at least in my experience.... more