Elevated Interest Rates Putting Pressure On Presale Buyers

Vancouver

2023/01/26

Elevated interest rates are putting pre-sale buyers in Metro Vancouver and the Fraser Valley in a tough spot. Before construction begins, buyers agree on a price, but financing is not arranged until closer to completion. Thus, many buyers find that the developer's already agreed-upon price no longer qualifies them for a mortgage. The pre-sale market is less transparent, so it's hard to know the scale of how many people are caught in this situation. This trend is likely to continue unless interest rates drop off, which is not the mainstream view economists have.