B.C. Finance Minister Carole James presents first quarter financial results, Sept. 10, 2019. (Tom Fletcher/Black Press)

Slow home sales cool B.C. government revenues this year

Finance Minister Carole James releases first 2019 results

A 16 per cent reduction in home sales and a slump in the forest industry have reduced the B.C. government’s estimated surplus by $95 million, Finance Minister Carole James says.

Home sales fell by 16 per cent from April through July, compared to the first quarter of the last fiscal year, James said as she released the B.C. government’s first quarter results for the fiscal year.

Home sales fell by 16 per cent from April through July, compared to the first quarter of the last fiscal year, James said as she released the B.C. government’s first quarter results for the fiscal year.

James said the government will continue to monitor the effect of the speculation and vacancy tax and other measures, watching for housing prices come down so more people can afford to buy a home.

“I don’t think there’s a British Columbian, particularly young people who are trying to get into the market, who would say we have reached the affordability level,” James said.

Comparing the first quarter results to the budget presented by James in February, taxation revenue is $277 million below budget and spending is above. The finance ministry shifted $300 million from contingency funds to yield a surplus forecast of $179 million.

RELATED: 12,000 B.C. residents paying speculation tax

RELATED: B.C. housing prices predicted to fall in 2019

The biggest adjustment in the first quarter is property transfer tax, down $385 million from the budget. That was partially offset by income tax revenue, which came in $215 million more than budgeted.

Despite struggles in the forest industry and continued cooling of the housing market, the province’s private sector economic forecast council expects its annual growth for 2020 to lead the country.

Economic growth is forecast at 2.4 per cent for B.C., compared to 2.2 per cent for Alberta and 1.8 per cent in Ontario, according to council member Bank of Montreal, CIBC, National Bank, Royal Bank, ScotiaBank and TD.


@tomfletcherbc
tfletcher@blackpress.ca

Like us on Facebook and follow us on Twitter.

Just Posted

Vernon ‘cartoon band-aid lady’ turns 100

Betty Ladyman used to hand out band-aids with cartoons to kids getting needles at VJH or lab

Vernon cowboy captures world championship buckle

Jaret Cooper, 16, from VSS, wins novice saddle bronc event at Junior World Finals rodeo in Las Vegas

Armstrong thrift store donates plenty to health care

Bargain Bin, run by Armstrong Spallumcheen Healthcare Auxiliary, donates $40,000 to VJH Foundation

North Okanagan woodstove exchange program continues

Grant funding received allows Coldstream/Lumby program to carry on

Kelowna Salvation Army sees increase in toy, cash donations

The Tiny Tim Charity Toy Breakfast started its 19th year Thursday morning

South Okanagan elderly accident victim ‘a tough customer’

Penticton Fire Department crews rescue elderly man who rolled his ATV down an embankment

LETTER: No one wins with private care

Dear Editor, Day’s team argues that the public health-care system is a… Continue reading

WATCH: Eyewitness captures moment truck slams into Tim Hortons in Kelowna

A pickup truck crashed into the front a Tim Hortons in Rutland causing a small fire on Monday night

LETTER: Keep bucks in the community

Shop Local! Start Now!! Here are some recent experiences which show how… Continue reading

Letter: Population growth is the problem

Dear Editor: In response to letters from Robert T. Rock of Mission… Continue reading

Morning Start: How many people live on earth?

Your morning start for December 10, 2019.

China hints at national security trials for 2 Canadians detained for one year

The two Canadians’ detention is largely seen as retaliation for the arrest of a Huawei exec

B.C. seaplane company set to test the first commercial electronic plane

The plane is powered by a 750 horsepower electric motor

Most Read