What will happen to pre-construction houses when there is price correction?
Usually pre-constructions houses are booked by
Person A - family who wants to upgrade to bigger house, by selling his primary residence.
Person B - investor who reassign to potential buyers before the closing date.
There may be much more cases like preconstruction booked by first-time buyer or speculator for whom it may be 2nd, 3rd or n-th pre-construction. These are the extreme case.
Lets talks about the impact of person A and B after a year. As of today Bank of Canada says, there is no change in interest rate of 0.5%
Person A - family who wants to upgrade to bigger house, by selling his primary residence.
Person B - investor who reassign to potential buyers before the closing date.
There may be much more cases like preconstruction booked by first-time buyer or speculator for whom it may be 2nd, 3rd or n-th pre-construction. These are the extreme case.
Lets talks about the impact of person A and B after a year. As of today Bank of Canada says, there is no change in interest rate of 0.5%