(Black Press Media files)

Mortgage stress test losing impact on B.C. housing sales: BCREA

Housing sales have been increasing each month since June across British Columbia cities

The impacts Canada’s mortgage stress test has had in calming the hot housing market by reducing demand are in the rear view mirror, according to the B.C. Real Estate Association.

In its monthly report on August’s housing climate, it saw a 26 per cent decrease in housing sales from the same month last year. But seasonally adjusted, housing sales have been increasing by two to three percentage points since June.

“The B.C. housing market is evolving along the same path blazed by Ontario and Alberta, where the initial shock of the mortgage stress-test is already dissipating, leading to increasing home sales,” said Cameron Muir, BCREA chief economist.

In its quarterly forecast in August, the association reported MLS residential sales are expected to be 21 per cent lower by the end of this year compared to 2017. That’s a drop from more than 100,000 sales to 82,000 in 2018.

In that report, the BCREA placed blame for the sales decrease on the mortgage qualification stress that was introduced in January, which requires all mortgage applicants qualify for a mortgage at a higher rate than they will actually pay. The idea is to ensure the new home buyer can pay in anticipation of rising interest rates.

Muir said static sales, as well as new home starts, have led to a more balanced supply in market conditions in many B.C. regions, compared to earlier this year. That means less competition and multiple offers that typically drive up prices.

The average price for a home also edged back 1.2 per cent from the same time last year, at $669,776.


@ashwadhwani
ashley.wadhwani@bpdigital.ca

Like us on Facebook and follow us on Twitter.

Just Posted

More burning prohibitions rescinded in southeast B.C.

Category 2 and 3 fires will be permitted in Southeast Fire Centre as of 1p.m. on Wednesday.

Candidates declared for 2018 elections

Nominations for the municipal election have come to a close, and the… Continue reading

Golden Ultra hosts variety of races

The Golden Ultra returns on Friday, September 21 incorporating two stage races… Continue reading

Summerland Steam lose one, win one in hockey action

Junior B team loses to Golden, but wins against Chase

64 cats seized from ‘bad situation’ now in BC SPCA care

The surrender is part of an ongoing animal cruelty investigation with BC SPCA Special Constable

B.C. hockey product eyes shot at Olympic spot with China

Fletcher is one of 24 who travelled to Shenzhen, China for the first official Olympic dev camp.

Are you feeling lazy? That’s OK – it’s just science

UBC study shows that humans are hardwired to prefer being sloth-like

LETTER: Who do we blame for the tragedy of Marrisa Shen’s death?

The B.C. girl was killed in a Burnaby park last July

Competition tribunal to hear B.C.-based case on airline food starting in October

The competition commissioner argued Vancouver airport authority had exploited its market position

Seek compromise with U.S. on cannabis at border, lawyers urge Ottawa

U.S. Customs and Border Protection agency sent tremors through Canada’s burgeoning cannabis sector

Trudeau says Canada wants to see ‘movement’ before signing revised NAFTA deal

Foreign Affairs Minister Chrystia Freeland is back in Washington in search of a way to bridge divide

Young people need us to act on climate change, McKenna tells G7 ministers

Catherine McKenna led off the three-day Halifax gathering Wednesday

East Kootenay town considers public smoking ban ahead of cannabis legalization

Under the proposed regulations, anyone caught smoking or vaping in public will face a $2000 fine

Most Read