(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

Around the BCHL: Merritt forward Mathieu Gosselin is BCHL Player of the Week

Around the BCHL is a (near) daily look at what’s going on around the league and the junior A world.

UFV hosts revitalized Literary Festival featuring some of its previous writers-in-residence

Taking over Mission’s festival, UFV hopes its Literary Festival will be just as popular

Final list of 2018 election candidates confirmed for Chilliwack and beyond

Friday was the deadline for filing nomination papers of candidates running in the 2018 elections

Earl Marriott superstars sink Sardis football Falcons

Byron Ruvalcaba and Sam La Roue led the Mariners to a 34-20 home-field win over Sardis.

UPDATE: Woman from Surrey killed in head-on collision in Chilliwack Saturday

Witnesses in the vehicle struck told first responders the woman appeared to be asleep at the wheel

B.C. tent city ‘devastated’ after flash flood

Maple Ridge mayor says that residents shouldn’t have to return to their flooded tents

Man convicted of manslaughter in 2016 belt-strangling death in Abbotsford

Shayne McGenn found guilty in apartment killing of David Delaney

Tilray to export cannabis formulation to U.S. for clinical trial

Marijuana remains illegal in most of the U.S.

Court of appeal grants injunction on Taseko’s exploratory drilling in B.C. Interior

The decision provides temporary protection and relief, said Chief Joe Alphonse

Volunteer crew ready to build ramps for B.C. amputee

Jean Moulton will soon have an easier time getting in and out of her home.

VIDEO: B.C. tour offers unique underground glimpse of generating station

About 1,250 people expected at sold-out tour on Sunday

Allegations against Kavanaugh pose test for #MeToo movement

Aside from the Ford-Kavanaugh showdown, this has been a tumultuous season for the #MeToo movement

Around the BCHL: Merritt forward Mathieu Gosselin is BCHL Player of the Week

Around the BCHL is a (near) daily look at what’s going on around the league and the junior A world.

Parents of B.C. toddler who died in unlicensed daycare sue over negligence

‘Baby Mac’ was only 16 months old when he died in a Vancouver daycare

Most Read