Excellent Incentives on offer - Preconstruction sales lag

As interest rates continue suppressing market activity in local residential real estate. Builders and developers are finding the current market particularly tough. Developers work with pricing expectations that an individual Seller on the resale market does not. For example, builders usually sell and build in phases when developing a large site. This helps to spread out income and expenses and can work in the favour of a builder when prices are rising. However, if a builder sells Phase 1 at peak market prices and sells Phase 2 considerably lower in a down market, it causes considerable problems. In this scenario, developers aim to keep prices higher but instead will offer incentives on the back end of the deal (which still makes the purchase overall a much better deal). Those in the resale market have no such obligations to maintain pricing parity with their neighbours, and if they need to sell a property, they can simply lower the asking price.

New Construction Upsizing Opportunities

Perhaps you’ve bought your first home already, and it was a practical choice, but now you need more space. This is a great time to sell and move up the property ladder (even though it’s not peak return for your first property, you’re buying a more considerable asset when prices are deflated; as the market normalizes, appreciation will be stronger in your new and improved asset class).

New construction offers even further potential savings. Lock in a purchase price this fall on a new construction build, and though you will have to make a deposit (amount may be negotiable but can be up to 15% before completion), you won’t need financing until closing. A single-detached new build may not be completed until late 2024 or early 2025. An apartment condominium in a preconstruction tower may not be built until 2027. Ideally, interest rates will be lower at that time.

Check Out Our Highlighted New Construction Offers

Fusion Homes

ACTIVA

momentum

*(All brokerage in-house rebates subject to builder supply and current incentives)

Curious About New Construction Sales? Further Questions?

We’d love an opportunity to chat. Utilize our expert negotiation and market knowledge. Builders have not been offering incentives like these in many years!