(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

Shuswap bottle drive to support pediatric cancer research

Young cancer patient doing her best to help others with the disease that hits one in 333 kids

Regional district directors’ pay conflict resolved in new bylaw

11th-hour attempt for more by CSRD electoral area directors fails

Iconic Shuswap sternwheeler undergoing work for return to service

Sicamous business owner Mike Helfrick hopes to offer dinner tours on historic vessel

Salmon Arm Silverbacks on a hot streak at Bauer BCHL showcase

Shuswap skaters put up back-to-back wins against Victoria, Alberni Valley

In photos: Ready, set, roll!

Friendship Day Soap Box Derby excitement in downtown Salmon Arm

Weekday weather update

A look at your Okanagan-Shuswap weekday weather for Sept. 24

Edmonton cannabis company revenues more than triples to $19.1 million

Aurora Cannabis revenues more than triple in fourth quarter

B.C. pharmacist suspended for giving drugs with human placenta

RCMP had samples of the seized substances tested by Health Canada

Seattle one step closer to NHL after arena plan approved

Seattle City Council unanimously approved plans for a privately funded $700 million renovation of KeyArena

Harvest Moon to light up B.C. skies with an ‘autumn hue’

It’s the first moon after the autumn equinox

Hockey league gets $1.4M for assistance program after Humboldt Broncos crash

Program will help players, families, coaches and volunteers after the shock of the deadly crash

Don’t feed birds in the parking lot

Vernon wildlife control services owner says feeding ducks and geese, or any wildlife, is bad

Canada has removed six out of 900 asylum seekers already facing U.S. deportation

Ottawa had said the ‘overwhelming majority’ had been removed

Most Read