(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

Restorative justice key for North Okanagan society

National Restorative Justice Week begins Sunday

Hall call for Vernon’s Ken Holland

Four-time Stanley Cup-winning GM of Detroit Red Wings to be inducted into BC Sports Hall of Fame

Vernon on track to record same number of overdose deaths as last year

128 people died of overdoses in September across the province

Vernon rallies around family battling throat cancer news

The Thomas family is one of the many that are financially vulnerable to unexpected personal crises.

Your weekday weather update

Flurries and more rain anticipated for the Okanagan - Shuswap

Protesters confront Environment Minister in B.C.

Protesters wanting more for killer whales confront Catherine McKenna

Humans reshaping evolutionary history of species around the globe: paper

University of British Columbia researcher had the paper published in the Proceedings of the Royal Society

Toronto ‘carding’ activist Desmond Cole stopped by police in Vancouver

Cole says his experience reveals what daily life is like for black and Indigenous residents

Commercial trucks banned from left lane of Coquihalla

B.C.’s Ministry of Transportation has introduced a new program that hopes to prevent accidents and closures on the Coquihalla Highway.

Okanagan pickleball pair win bronze at nationals

Vernon and Kelowna players reach podium in California

B.C. firefighters rescue horse stuck in mud

‘It happens more often than you’d think,’ says deputy chief

Couple allegedly caught staking out Okanagan home

The man and woman were seen in a black Suzuki Tracker with a white back

Silver Star nordic trails open Friday

Great early season conditions at North Okanagan resort and at Sovereign Lake Nordic Centre

Most Read