See, guys all these factors are interrelated and are basically the effects of a cyclic issue which is likely to carry on for few more months. However at such a situation, the buyers actually gain.
Real estate market has not been witnessing apparent demand in the last few months, for which developers have been offering discounted rates to push sales. Not only has the new properties, even in resale market the number of sales reduced leading to slight fall in prices. As a result of this, the inventory level has been rising and buyers are worried whether to invest or not.
But my point is when buyers are not buying, investors start facing a cash-crunch which further tightens the cash-flow to developers.Hence the economy is slowing down...
It seems to be a tough time for some of the developers, as property sales are slowing going down while regular short-term investors are buying many properties and selling them off within months which are also narrowing down. In some cases, such investors are asking builders for refunds.