(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.

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

What to do in January? Lots going on in Kimberley/Cranbrook

Pictured above: Kootenay Lately (pictured at SummerSounds last year) kick off the… Continue reading

Fire Hall organizes fundraiser for Cranbrook Community Forest Society

The Cranbrook Community Forest Society (CCFS) has found themselves with a $2,100… Continue reading

Province providing addtional funding for ECE bursaries

The provincial government is reallocating $4 million from a federal childcare funding… Continue reading

Cranbrook Chamber calls for Business 2020 Awards nominations

Chris Thom of Dunlop Truck Centres won Business Person of the Year… Continue reading

Friday fatality at Fernie Alpine Resort

It’s the second person to die in a tree well at a ski resort in B.C. in the past week.

VIDEO: Bobcat infiltrates Shuswap couple’s coop, feasts on fowl

Police officers credited for attempting to assist with animal’s extraction

VIDEO: B.C. mom shares ‘insane’ experience of viral dinosaur video

Tabitha Cooper filmed her costumed sons meeting their grandma at the Victoria International Airport

Vancouver Island home to one of Canada’s largest private skateboard collections

Eric Pinto owns hundreds of boards, spanning multiple decades

ICBC to bring in ranking system for collision, glass repair shops

Change comes after the much-maligned auto insurer has faced criticism for sky-high premiums

‘It was just so fast’: B.C. teen recalls 150-metre fall down Oregon mountain

Surrey’s Gurbaz Singh broke his leg on Mount Hood on Dec. 30

B.C. woman crowned the fastest female marathon runner in Canadian history

Malindi Elmore ran an incredible 2:24:50 at the Houston Marathon

Alberta bulldog breeder ordered to refund B.C. buyer over puppy’s behaviour

Tribunal ruled a verbal agreement to send a new dog superseded the written contract

Man dies in backcountry near Nelson’s Whitewater Ski Resort

The victim was found unresponsive in a tree well Friday

Most Read