(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

Developers go back to drawing board after high-rise application deferred by Parksville council

IAG Developments has proposed a multi-building development on city’s waterfront

LETTER TO THE EDITOR: People experiencing homelessness unlucky

Poverty, illness and marginalization don’t equate to decrepitude, says letter writer

Nanaimo Timbermen in five-way tie for first place

Senior A lacrosse team has a home game Saturday, July 20

Nanaimo Ladysmith education support workers reach tentative three-year deal

Union membership to vote on collective agreement on July 31

Advocates for now-closed Nanaimo soup kitchen ask for city’s help

Wisteria Community Association’s Stone Soup shut down following eviction of owners this week

VIDEO: B.C. MLA Michelle Stilwell takes first steps in nearly 30 years

‘It actually felt like walking. It’s been 27 years… but it felt realistic to me’

Nanaimo mom says she will go to court to try to get allegedly abducted daughter back

Tasha Brown says her estranged wife abducted their daughter Kaydance Etchells in 2016

Thunderstorms forecast across B.C.

Environment Canada has issued a thunderstorm watch for B.C.’s central Interior

Driver who killed B.C. motorcyclist receives absolute discharge

Chase family speechless following decision by BC Review Board

Lower gas prices slow annual inflation rate to Bank of Canada’s 2% bull’s-eye

Prices showed strength in other areas — led by a 17.3 per cent increase in the cost of fresh vegetables

B.C. moves to preserve 54 of its biggest, oldest trees

Fir, cedar, spruce, pine, yew set aside from logging

Dormant Chemainus Foods building to be revived with new market

Initiative expected to bring new life to the community’s downtown core

Local artist explores Nanaimo’s old Chinatown in new video installation

Charlotte Zhang among eight artists in Nanaimo Art Gallery’s ‘Estuary’ exhibition starting this week

Taekwondo instructor, 21, identified as B.C. bat rabies victim

Nick Major, 21, an instructor at Cascadia Martial Arts in Parksville

Most Read