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Borrowed money led to a boom in pre-construction sales. It could become a problem

By Dale Oviatt posted 01-31-2024 12:00 AM

  

Low pandemic-era interest rates sparked a real estate boom across Canada, including in the pre-construction market, but with an increasing number of homebuyers having trouble closing, one expert explains how a "double whammy" of factors(opens in a new tab) has contributed to the issue.

"If the real estate market picks up, everything's fine(opens in a new tab)," Doug Hoyes, an insolvency trustee at Hoyes, Michalos & Associates Inc., told CTV's Your Morning. "If there's a shortfall, (the builder) is coming after you."


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