"High inflation" is the phrase everyone is talking about these days. According to Statistics Canada, the most recent Consumer Price Index (CPI) was 8.1%. The Bank of Canada has had to issue a series of interest rate hikes to combat these elevated inflation levels. It plans to do even more of those hikes in the future until inflation stabilizes.

For prospective homebuyers, these interest rate hikes have made people hesitant. While mortgage rates are low compared with historical standards, they're now at least 50% higher than they were just a year ago. If the Bank of Canada raises rates again, they may go even higher.

Homebuilders must adjust to this new reality of a more "hesitant" buyer. This new reality means closing the sale might be a little more complex than in the past. Those involved in selling new construction must take every step possible to help sell their homes. One of the best ways to sell pre-construction is through virtual reality. Here are two crucial ways VR (and, in particular, the VR we provide at Nanuk Technologies) can help you close the deal, even in less certain fiscal times.

High Inflation Means Builders Must Make the Unknown Safe and Real

As we say on our home page, with pre-construction housing, buyers need to be able to envision their completed home. The problem is, for most buyers, that's hard to do.

However, with VR, virtual tours, architectural renderings, and animations, people can get a strong sense of what the home will be like - which, in turn, makes it feel all the more real.

Numerous studies show consumers feel more attached to things they can see and touch rather than something abstract. Seeing it in person makes it all the more real. There's also evidence suggesting that AR/VR technology can be a substitute for physical touch and can lead to similar positive purchase intentions.

Higher inflation leads to less certainty. Builders can help make homes feel more tangible and foster a greater connection between the prospective buyer and the pre-construction home by using photorealistic renders, tours, and virtual reality experiences.

Buyers Expect Virtual Tours

In times of high inflation, buyers can also afford to be a little pickier regarding properties. While virtual tours were considered a "nice-to-have" in pre-COVID times, they are quickly becoming necessary. Now, they're not only desirable, but buyers expect them. If your property doesn't have a virtual tour, it will reflect more negatively on your home than it did in the past.

Virtual tours are even more crucial with pre-construction real estate. Not having one could turn many buyers off, and they might go with another pre-construction property that does have them!

Virtual Reality and Virtual Tours Will Make Your Pre-construction Come Alive

Ultimately, in times of high inflation, the buyer is a little more in the driver's seat when purchasing a home. For builders in the pre-construction phase, these times call for making the unknown seem as authentic as possible. Providing quality VR experiences can help prospective buyers build a rapport with their future home that can help overcome hesitancy concerning the economic outlook. Additionally, providing these experiences will help keep your pre-construction listings in line with what buyers expect now.

Contact us today to learn more about these experiences and how they can keep your sales pipeline healthy in this environment. We'd love to learn more about your business and provide you with solutions that homebuyers will love!