(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

VIDEO: Cutting horse champ from Langley

‘I’m just a guy on a horse’

Vancouver Giants fans cheer on team

New booster club aims to unite supporters of Langley-based hockey team

Langley single mom given aid to achieve what’s in her heart

Each year Langley Soroptimists give grants to local mothers going back to school

VIDEO: Highway One to be widened east to 264th Street in Langley

The $235 million project includes upgrades to overpasses and a rail bridge

Frankly Speaking: Questions to ponder before SkyTrain reaches Langley

Columnist Frank Bucholtz looks at the impact of SkyTrain before it arrives

Canada privacy watchdog taking Facebook to court

If the court application is successful, it could lead to modest fines and an order for Facebook to revamp its privacy

One million recyclable bottles “lost” daily in B.C., foundation says

387 million beverage containers didn’t make it back into the province’s regulated deposit refund system in 2017

VIDEO: B.C.’s waving granny gets incredible send-off from school kids

Tinney Davidson has been waving at students on their way to school for over 11 years, but is moving in a month

Struggling B.C. adoption agency elects new board that intends to keep it open

The previous board announced that Choices would close May 31

Woman, 60, charged in connection to thefts at YVR

RCMP believe the foreign national is part of a larger organized theft group

Vancouver man, 19, charged in human trafficking case involving teen girl

The 16-year-old girl was reported missing and later discovered in Vancouver

Worst 10 bus routes in Metro Vancouver for rider complaints

TransLink releases list, with Route 319 at the top

Mayors, First Nations chiefs, urge ‘immediate action’ on new Massey crossing

Joint letter asks province to move up timeline, consider only eight-lane tunnel options

Bus driver assault in Vancouver once again raises safety concerns

A 49-year-old Surrey man was released on a promise to appear in court. No charge has been laid

Most Read