The active presale market in Metro Vancouver and the Fraser Valley is boosting optimism among real estate buyers.

Source: MLA Canada, Western Investor

Presale launches in Metro Vancouver and the Fraser Valley have seen consecutive increases for three months in a row.

MLA Canada reported that in January, three presale projects were launched, followed by six more in February, totaling 1,024 units. The firm anticipates the introduction of 14 projects this month, with an estimated total of 2,150 units, bringing the total number of projects since the beginning of 2024 to 23.

Source: MLA Canada

Garde MacDonald, Director of Advisory at MLA Canada, highlighted the significance of spring for selling projects, attributing it to better weather and a more positive outlook compared to the previous year’s market conditions.

Between January and March 2023, a total of ten projects were launched, comprising approximately 1,700 units. MacDonald noted that the comparison of launch activities in 2024 and 2023 signals a notable increase in optimism.

In February, 42% of the 590 presale units available in Metro Vancouver and the Fraser Valley were sold. MacDonald expects this percentage to decrease by five to ten points in March due to the increased number of units entering the market.

While interest rates significantly influence potential homebuyers, presale buyers are slightly less sensitive, as they don’t need to secure a mortgage until the project is completed.

Regarding pricing, MacDonald mentioned ongoing recalibration in the presale market, driven by factors such as location, building type, and the number of bedrooms. He described the market as being in a phase of “price discovery,” lacking sufficient transactions for confident valuation.