(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

Regional District of Nanaimo to review water infrastructure

Region to make assessments of each of its water service areas

City declares house on Metral Drive a nuisance property

Nanaimo council votes to start charging for calls for service to the address

Nanaimo’s new council meets for first time in council chambers

Mayor Leonard Krog says council members came to first regular meeting prepared

NDSS Islanders win Island volleyball championship

Nanaimo District defeats Carihi three sets to one in AAA Vancouver Island final in Victoria

Kw’umut Lelum expanding its services off-reserve

Child and family support services will be available through new Prideaux Street office

Great Nanaimo Toy Drive begins its campaign leading up to Christmas

The 36th Great Nanaimo Toy Drive will make sure children have presents on Christmas morning

Case of bovine tuberculosis found in cow on southern B.C. farm

CFIA said the disease was found during salughter and they are investigating

Air force getting more planes but has no one to fly them, auditor warns

The report follows several years of criticism over the Trudeau government’s decision not to launch an immediate competition to replace the CF-18s.

B.C.’s Esi Edugyan wins $100K Giller prize for Washington Black

Edugyan won her first Scotiabank Giller Prize in 2011 for Half-Blood Blues

Bolder action needed to reduce child poverty: Campaign 2000 report card

The report calls for the federal government to provide more funding to the provinces, territories and Indigenous communities to expand affordable, quality child care.

Judge bars US from enforcing Trump asylum ban

Protesters accused the migrants of being messy, ungrateful and a danger to Tijuana; complained about how the caravan forced its way into Mexico, calling it an “invasion.”

Ottawa Redblacks defensive back Jonathan Rose suspended for Grey Cup

Rose was flagged for unnecessary roughness and ejected for contacting an official with 37 seconds left in the first half following a sideline melee after a Tiger-Cats reception.

Mistrial declared in Dennis Oland’s retrial in father’s murder

The verdict from Oland’s 2015 murder trial was set aside on appeal in 2016 and a new trial ordered. Richard Oland, 69, was found dead in his Saint John office on July 7, 2011.

Most Read