In January, three presale projects took flight, and by February, the count had risen to six, totaling a whopping 1,024 units. This surge was highlighted in a report released on March 12 by MLA Canada, a real estate services firm.
Looking ahead, MLA Canada anticipates a bustling March, with a forecast of 14 projects launching, boasting an estimated total of 2,150 units. This momentum marks the commencement of 23 projects since the dawn of 2024.
Spotlight on Seasonal Dynamics
Garde MacDonald, director of advisory at MLA Canada, sheds light on the seasonal dynamics: “Similar to the resale market, the spring is the prime time for selling projects.” With daylight savings and better weather, optimism blooms, influencing housing demand positively.
Comparing the current surge to last year’s subdued conditions, MacDonald observes a notable shift in sentiment: “There’s just over double the launch activity when you compare 2024 to 2023. That’s quite interesting to me because it signals a bit more optimism.”
Market Movement: February’s Sales and March Predictions
In February, 42% of the 590 presale units available across Metro Vancouver and the Fraser Valley found buyers. However, MacDonald predicts a slight dip in March due to the influx of new units entering the market.
Interest Rates and Pricing
Regarding interest rates, MacDonald notes that while they do influence potential homebuyers, presale buyers are less sensitive. Since buyers don’t need to secure a mortgage until project completion, they’re more concerned with future interest rates.
“When it comes to pricing,” MacDonald explains, “the presale market is still finding its footing.” Factors such as location, building material, and unit size play significant roles in determining prices. He describes the current state as a “price discovery mode,” indicating a lack of sufficient transactions to gauge accurate unit values.
In Summary
In essence, Vancouver’s presale real estate market is experiencing a surge in activity, driven by optimism and seasonal trends. However, uncertainties persist regarding pricing, reflecting the ongoing process of market adjustment and discovery.
Written by Jared Gibbons – Top 1% Realtor in the Fraser Valley.