The presale market across Metro Vancouver and the Fraser Valley may appear quiet on the surface, but for savvy investors and future homeowners, now could be an ideal time to buy.

On July 30, the Bank of Canada held its benchmark interest rate steady at 2.75%, for the third consecutive time, offering no immediate relief for homeowners facing mortgage renewals. However, for those purchasing presale homes, there’s a built-in financial advantage: you’re securing today’s prices, but won’t need to finalize your mortgage until the home is completed, often three to four years down the road.

By that time, interest rates may have come down, and the broader economic uncertainties (from global trade disruptions to domestic uncertainty) may also have settled. Many economists expect that rate cuts could begin in late 2025 or early 2026, depending on how inflation and growth trends continue.

In the meantime, however, the market remains cautious. Much of the current slowdown reflects broader economic signals. Canada’s GDP declined by 0.1% in May, the second consecutive monthly contraction. Early estimates for Q2 point to a 0.3% dip overall. Meanwhile, labour market softness continues, with job seekers now spending an average of nearly 22 weeks looking for new employment.

In this context, buyers are understandably more hesitant. Affordability remains a concern, and financial outlooks are less certain than they were even a few months ago. Many prospective buyers are taking more time to compare options, evaluate value, and consider longer-term stability before entering a presale contract.

Cautious Momentum in a Slower Cycle

According to MLA Canada’s July 2025 Pre-Sale Real Estate Insights Report, June brought just seven project launches to market, totalling 514 units. That’s about half the typical June volume and a third of the five-year average unit count. Sales were similarly muted, with just 4% of newly released units sold, compared to a historical seasonal average of 27%. Only 20 units sold across all active presale projects, an exceptionally quiet result for what is traditionally a stronger month. While the presale market may be quiet, it’s not frozen. We’re seeing more strategic decision-making on both sides: developers are adjusting their launch tactics, and buyers are taking longer to evaluate value, fit, and timing.

Why Presales Still Offer Strategic Advantages

Despite higher borrowing costs and slower activity, presale homes continue to offer several long-range advantages:

• Delayed financing: You’re not locking in at today’s rates. Your mortgage rates are secured at completion, likely years from now, when rates may be lower.
• Less competition: A quieter market can mean better unit selection, longer decision windows, and in some cases, compelling buyer incentives.
• Equity potential: In a flat or rising market, buyers may benefit from property appreciation during construction.

Developers Are Responding

Presale projects in the Fraser Valley and outer Metro areas are increasingly tailored to what today’s buyers are seeking: more space, practical layouts, and more accessible pricing. Developers are also responding to market conditions with:

• Phased launches and longer preview periods
• Flexible deposit structures
• Carefully timed release strategies

In addition, BC’s upcoming Development Cost Charge (DCC) deferral policy, effective January 1, 2026, will allow 75% of DCCs to be paid at occupancy rather than upfront. This change could ease early-stage financing pressure and encourage more launches in the year ahead.

Resale Market Offers Limited Alternatives

While presale activity has slowed, the resale market hasn’t offered much relief either. Listings are up 43% in Greater Vancouver and 75% in the Fraser Valley, but sales remain more than 25% below the ten-year average. Prices have remained relatively steady, with many sellers opting to wait for stronger offers rather than discount pricing.

What We’re Watching

As the second half of 2025 unfolds, our advisory team will be closely monitoring:

• How developers align project timelines with the upcoming DCC deferral policy
• The absorption rate of low-density, value-oriented homes
• Whether phased releases and extended preview periods become standard practice
• The potential for interest rate cuts by year-end or early 2026
• If rising inventory levels begin to place downward pressure on pricing

A Market Moving Cautiously

The July 2025 data points to a market that is quiet but adaptive. Developers are continuing to bring projects forward, but in smaller volumes, with greater focus on timing, product fit, and end-user appeal. Buyers, meanwhile, are navigating their decisions thoughtfully, taking the time to assess options, financial readiness, and long-term fit. While no dramatic shifts are expected in the short term, presales remain one of the few areas where buyers can act now with greater flexibility, secure pricing, and the benefit of time.

As always, MLA Canada will continue to monitor these shifts in real time and share data-driven insights to support our clients and partners across the development landscape.