Vancouver Presale Projects is Still Going Strong Despite Market Slowdown

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It’s not a frenzied market like last year, but buyers haven’t backed away because of the rising interest rate. Stranddev FifthAvenueREM GoldinYVR | Vancouver presales preconstruction realestate realestatenews housingmarket

10:12 AM Aug 12, 2022

“I remember visiting a client who always had all her belongings in boxes. She was 78. She enjoyed it, living in Kerrisdale, downtown, the Burnaby area.”The presale market has slowed, so the ones flipping units might have to wait longer for decent returns. But there are pockets around the Lower Mainland where projects are still selling strong, mostly to end-users who intend to live in the units, according to marketers.

“I don’t think any developer has adjusted prices, or seen the need to do that,” says Lisa McDonald, vice president of sales and marketing for Strand Development.A good share of the demographic purchasing presales is in their thirties and already in the market, looking to upsize, or buy their first investment property. Older buyers are looking at “future use” properties as McDonald calls it, a unit to rent out until their kids are grown up and ready to occupy it.

“For first-time buyers, the monthly rent is increasing exponentially and making it less desirable to stay in that rental home, even with interest rates a little higher,” says McDonald. “Paying into something you own is always going to serve you well in the long term, whereas paying higher rent is not. So even though we all want that 1.5% interest rate again, it’s better to get into a home.”

 

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