Have you ever considered buying a presale?
  
Click here for our Presale Tour info
You're invited to this Saturday's PRESALE TOUR with Mylyne & Associates. We have exclusive access to 4 of the hottest presales in Surrey:
District Northwest: 10249 King George Blvd, Surrey, BC V3T 2W6
Lucent: 10239 King George Blvd, Surrey, BC V3T 2W6
Pura: 13734 104 Ave, Surrey, BC V3T 1W5
Sequoia: 10522 King George Blvd, Surrey, BC V3T 2X2
WHEN: The tour will start @ 12PM, Saturday (August 5)
WHERE: District Northwest Presentation Centre
RSVP: presales@mylyne.com
PRESALE ADVANTAGES:
Buying a Presale is Easier Than Buying an Existing Home:
Buyer’s are frustrated with low inventory levels of existing homes for sale on the Vancouver MLS system. In most categories there is a very limited choice of homes for sale. Whenever a good home becomes available there is often competition from other buyers and multiple offers are common on resale homes. In many ways buying a condo presale is a lot easier than competing against multiple offers because there are many units for sale in the building at one time.
Time to Save:
Some Buyers want the ability to lock in their home and then have months or years to save until completion.
Presale Contracts Are Usually Assignable:
Many investors buy presales with the hope of assigning (flipping) the contract at a profit before completion. Note: that not all presales are assignable and the developer will charge an assignment fee.
Rental Income on Newer Buildings Is Higher:
Investors who intend to hold onto the property and rent it out anticipate the rents will be higher on a new building.
Rising Market Appreciation:
Investors can leverage a relatively small deposit with the hope that the home will be worth more on completion than what they agreed to pay in the contract.
Can't make it, no problem. We can inform you when we we launch our next Presale tour.
Canadian Real Estate Industry Downgrades Home Sales Forecast
Canada’s real estate industry is lowering expectations for the market going forward. The Canadian Real Estate Association (CREA) revised its home sales forecast lower for the remainder of the year. They also see 2024 being slower than previously anticipated, as demand slows without central bank stimulus.
Canada’s Real Estate Industry Revises 2023 Sales Lower
Expectations for existing home sales continue to fall. CREA’s latest forecast shows a 6.8% drop to 464,000 homes sold by year-end. A drop was expected, but the latest forecast update is nearly 30,000 sales lower than expected 3-months ago. Demand remains close to historical volume, but just isn’t picking up as the industry had hoped.
Canadian Real Estate Slowdown Expected To Continue Next Year
Home sales are forecast to grow further next year, but it also got a downward revision. Sales are forecast to climb 11.2% to 516,000 homes in 2024. Once again, this was a downward revision of 45,000 units from the forecast 3-months prior.
CREA Expects 75,000 Fewer Sales Than They Did 3 Months Ago
Together, the downward revision reveals how rapidly the industry’s view of the market is changing. The latest forecast drops combined 75,000 home sales, a big shift that reveals higher interest rates are helping to temper excess demand.
Yes, excess demand. Canada’s central bank used record low rates, and quantitative ease, to intentionally stimulate housing demand. It may have been justified in 2020, but traditionally stimulus isn’t used when record demand is present. Roughly 250,000 excess home sales were driven by the stimulus in Canada. Even the BIS, the central bank for central banks, attributed rapid home price growth to keeping rates too low for too long, driving excess demand.
Higher rates are reducing home sales, and CREA is slowly coming to that realization. While it appears that higher rates are penalizing sales, the downward revision mostly just brings sales back to typical levels.
Inflation Goes Down From 4.1% to 2.8%
The rise in consumer prices decelerated again in June, but costs for shelter and food are still putting a strain on Canadian's wallets, evidence that bringing inflation down to target remains a tricky balancing act for the Bank of Canada.
The consumer price index (CPI) was up 2.8% last month, Statistics Canada reported on July 18, falling a couple of ticks below the 3% increase economists surveyed by Bloomberg had expected. That was down from 3.4% in May and marked the first time the inflation rate has fallen within the Central Bank’s target control range of 1 to 3% since March 2021.
The decline was driven by a 21% drop in gasoline prices for the month, which was largely the result of base-year effects; last year, prices at the pump shot up amid increasing global demand for crude oil.
In June 2022, inflation hit its peak above 8% and has come down as the Central Bank hiked interest rates at almost every policy meeting since March of last year — taking a brief pause in March and April of this year.
“Inflation has fallen into the Bank of Canada’s target range, but there are signs pointing to slower progress from this point on,” Royce Mendes, economist and managing director at Desjardins Capital Markets, wrote to clients in a note on July 18th.
Discounting gasoline, the headline inflation figure would have been 4% in June, down from 4.4% in May. Statistics Canada said elevated grocery prices, up 9.1%, and mortgage interest costs, up 30.1%, contributed the most to the overall increase of 2.8%.
Full Article Here
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