Maximizing Pre-Construction Sales in 2025

For builders and developers, adapting to the shifting real estate landscape is key to maximizing pre-construction sales in 2025. With interest rate cuts on the horizon and increased buyer confidence, the market presents new opportunities—but also challenges that require strategic planning.

 

Incentives and Standing Inventory

Many builders are leveraging innovative programs to move standing inventory. Targeted incentives, flexible financing options, and technology-driven sales strategies are becoming essential in a competitive marketplace.

Joseph Bozzo, Partner at Spectrum Realty Services Inc., Brokerage, emphasizes the importance of acting strategically in today’s market:

“With interest rate cuts on the horizon and low-rise inventory remaining tight, we’re seeing increased confidence from both end-users and investors. The demand for well-located, high-quality new homes is resilient, and buyers who enter the market now are positioning themselves ahead of potential price increases in the next 12 to 18 months.”

Bozzo adds that Spectrum Realty is focused on helping buyers and builders navigate these evolving conditions with expert guidance and market insights.

 

The Role of Interest Rates in Buyer Decisions

With interest rates expected to decline, buyers are regaining confidence, and developers are positioning themselves to capitalize on this renewed demand. Offering flexible deposit structures, extended closing periods, and value-added incentives can help drive sales momentum.

Lou Grossi, Broker of Record and President at Intercity Realty, sees current market conditions as a unique opportunity for prospective homebuyers:

“Declining interest rates and significant incentives have created favorable conditions for buying new homes.”

He encourages buyers to take advantage of these conditions while they last.

 

 

Market Insights from Benjamin Tal

Benjamin Tal, Deputy Chief Economist at CIBC, forecasts a bifurcated recovery in the Greater Toronto Area’s pre-construction market. He notes: “Low-rise housing will lead the resurgence due to tight inventories and responsive demand to declining mortgage rates,” while the high-rise condo segment may face ongoing challenges due to weaker pre-construction sales and oversupply. Tal also warns: “The current low pre-sale activity in the condo market, which is at a multi-decade low, could lead to severe supply shortages by 2026 or 2027,” potentially triggering price surges in the future.

These insights align with the perspectives of industry experts like Bozzo and Grossi, who stress the importance of strategic actions in the current market. Bozzo highlights that with limited low-rise inventory, buyers who enter the market now will be well-positioned for future appreciation. Similarly, Grossi emphasizes the advantages of purchasing in today’s climate with favorable financing conditions and incentives.

 

The Future of Pre-Construction Sales

As market conditions evolve, developers who embrace technology and data-driven decision-making will have the advantage. Utilizing advanced sales software, AI-driven analytics, and virtual sales platforms can streamline transactions and attract a broader audience of buyers.

Ultimately, maximizing pre-construction sales in 2025 requires a combination of innovation, flexibility, and market awareness. Builders who proactively adapt will be best positioned for success in the evolving real estate landscape.

Navigating the 2025 Real Estate Market

The Canadian real estate market is evolving rapidly in 2025, shaped by economic shifts, changing buyer behaviors, and government policies. Industry experts emphasize the importance of staying informed to navigate these changes effectively.

 

Economic Outlook and Interest Rates

Benjamin Tal, Deputy Chief Economist at CIBC, highlights that the Canadian economy is projected to grow at a rate of approximately 2.5% in 2025. Interest rates are expected to decline, with the Bank of Canada cutting rates by 50 to 75 basis points. Lower bond yields will lead to a modest easing of credit conditions, improving affordability for buyers.

 

Nicole Lombardi, Vice President of Sales at TFN Realty, sees this as a turning point for the market:
“With interest rate cuts and growing buyer confidence, we anticipate a strong uptick in sales throughout 2025. TFN has launched innovative programs to support builders in moving standing inventory, including cutting-edge solutions like SaleFish software systems.”

 

Market Trends: Low-Rise vs. High-Rise

A key trend in 2025 is the divergence between low-rise and high-rise segments:

• Low-rise homes are set to lead the recovery, driven by lower mortgage rates and limited inventory, which will fuel price growth.

• High-rise condos face challenges due to oversupply and reduced investor interest, keeping prices subdued.

Barbara Lawlor, CEO and Partner of Baker Real Estate Inc., highlights the changing landscape of demand in the GTA: “While immigration and international student numbers have moderated, there remains strong demand from end-users and investors looking to secure long-term value in the market,” Lawlor notes. She emphasizes that buyers are taking a more strategic approach, focusing on well-located developments with strong rental potential.

 

 

Supply and Future Opportunities

Despite ongoing demand, supply constraints persist due to high government taxes and development charges. This supply-demand imbalance may push prices higher in the next 12 to 18 months, presenting an opportunity for buyers to enter the market before further increases. Additionally, the elimination of GST on new rental apartment developments provides an incentive for builders to add much-needed supply.

 

Final Thoughts

Staying informed and prepared is crucial for those looking to buy or invest in 2025. As the market adjusts, opportunities will emerge for strategic buyers and sellers who understand the evolving landscape.

It is a virtual world

Martin Slofstra, Toronto Sun • New Homes And Condos (Original article)

December 03, 2022


New home buyers enjoy the benefits of going on-line

It seems to be a bit of far-fetched notion, to research, to shop for and to buy a new home entirely online, never to enter a sales office or visit a model home. But not only can it be done; the reality is the majority of new home buyers are preferring it that way.

It may also not be what Canadian software designers Rob Nicolucci and Rick Haws could foresee happening in 2006 when they co-founded a software system called SaleFish, a simple streamlined and secure platform for real estate transactions and for builders to sell new homes.

The goal initially was to make the sales process easier by providing more up-to-date information, and earlier versions of the software catered to needs of salespeople who worked for new home builders.

Fast forward to now, it’s also helping new home buyers change the way they research and buy new homes, and fundamentally alter the way the new home and condo industry operates.

And the turning point? Says Haws simply: “COVID-19 changed everything, they (the builders) had to adapt.”

The pandemic, of course, made in-person visit to a sales office impossible, at least for a few months. That the software can be used by customers and sales reps to back-up and streamline appointments online became one of its most important features.

Using the software, buyer and seller can browse listings or new home sites, and receive accurate and timely information, gaining details and pricing of each model or home.

Along the way, many other benefits were also realized.

Line-ups at sales offices were eliminated, and so too the madhouse scene of a dozen or so salespersons in a trailer at a new home site chasing after customers scrambling around hoping that a certain lot at a certain price was still available.

Using the software, all price changes, site details, plans could be updated instantly, and in theory, the reach of the sales office could be extended to any remote computer, whether an iPad, touch-display device or laptop computer.

All the way around it just makes the sales process more enjoyable, “it’s no longer a pressure-cooker when it comes time to buying a new home,” says Richard Mariani, sales and marketing manager, CountryWide Homes, which uses the software at its new homes sites now open in Bradford, Brampton, Caledon, East Gwillimbury, Holland Landing, Markham, Oakville, Richmond Hill and Simcoe County.

Mariani says that in spring 2020, the builder had to pivot. “During the early onset of the pandemic, most of us were wondering if we would still have a job. But by June 2020, people were ready to buy,” he says.

The rest, of course, is history, as the Toronto real estate and new home market would in the next two years enter into one of its hottest sales periods ever. Obviously, the pandemic changed everything, but Mariani observes there is now also a much greater comfort level with technology.

“The buyer is more educated than ever and does their homework in advance and on web sites. Customers already know what they want in terms of models, pricing, neighbourhood amenities and they have access to all this information at their fingertips,” he says. “Many purchasers come to an online meeting already prepared to make a deal.”

In addition, the software enables the builder to receive analytics, helping them to see trends such as which design features and amenities are the most popular. And by eliminating much of the paperwork in the process, “It allows us to open projects more quickly, get to market sooner and gives management the information they need to make decisions,” says Mariani.

Software development of course is an ongoing process and work is now being done to give SaleFish a sleek, modern feel with an intuitive user interface, while enabling it to more easily integrate with other kinds of business software and with third-party solutions.

Now set to unveil its “biggest platform changes in years,” other features will address three major needs: Security, identity verification and payments. “The identity verification piece is a big one, nobody is doing that,” says Haws.

Not only can SaleFish automatically fill in documents by scanning driver’s licenses and securing that data, but it can also verify that it’s scanning a live person (rather than a bot) and compare the person’s face with the ID provided. This has become an imperative feature with remote buying being more commonplace.

Another big consideration is security. SaleFish is also the only real estate platform to have a CyberSecure Canada certification for meeting the highest levels of security for data storage.

With payments, buyers will have the option to make all their deposits and initial down payment online.

Having fundamentally changed the new home buying process, there will be no going back.

Research shows 75 per cent of new home buyers prefer an online appointment versus live one, and the comfort level with software tools like Microsoft Teams and Zoom has never been higher.

Mariani acknowledges too there always be those who insist on meeting in person, but that is now a minority of new home buyers.

That being the case, the only thing left for the new home buyers to do live and in person is pick up the keys. Safe to say, the software will take care of the rest.