Like many other tightening lending standards, this one will have the effect of slowing overall market activity with respect to condo sales.
Based on the absorption rate of new condominiums even relatively successful condo marketing and sales efforts may not result in actual closed units for many weeks and months from the time of contracts being offered and accepted.
If you have your heart set on a condo building that is not yet at the 70% or higher closed/sold threshold, then you should just be prepared to submit and offer and wait to close on it (for in some cases years). If you've found the building of your dreams and are willing to wait for it, then you may in get yourself into a building before prices begin to recover and rise again. So today's contract might look like a really great deal if prices begin to climb again at their historically sustainable levels (anywhere from 4-7% per year depending on your market area).
At the same time you might find yourself "locked into" a purchase years out, and prices may continue to decline which is an entirely possible scenario given today's market conditions. If you're concerned about that circumstance, then you might want to have your attorney amend any contract that you enter into to allow the pricing of the eventual sale and closing to be contingent upon re-appraisal at the time of the close. If prices have continued to slide, then with such contract language you might be in a position to close on the unit for even less than it is valued today.
If you are getting a loan for your purchase rather than purchasing with cash, then your lender's underwriting process should likewise require an appraisal. And any appraisal under the contract price of the unit should trigger a renegotiation of terms anyway given that it is virtually impossible that your lender would close on a unit that is at a higher price than the bank's appraisal amount.
Good luck to you in any case, and let me know if you need any additional assistance.
Broker Associate, Sudler Sotheby's International Realty