(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

Gary Pearson Memorial Award presented by Kimberley Minor Hockey

On Tuesday night at the Dynamiters game, Kimberley Minor Hockey presented the… Continue reading

The new faces of the Kimberley Medieval Festival

The organizers of the festival and proposed RavenStone Viking settlement are in town this week.

Inquiry begins into West Kootenay RCMP shooting death

Const. Jason Tait faces charges in the 2015 shooting death of Waylon Jesse Edey in Castlegar

Mountain caribou decline is heartbreaking story, Wildsight says

As reported in the Bulletin last week, one mountain caribou cow from… Continue reading

Sharpen up and help the Kimberley Food Bank

The Grater Good in Kimberley will be offering knife sharpening at the… Continue reading

Canada’s archive buys rare book that hints at Nazi plans for North America

The 1944 book may have served as a blueprint for a Nazi purge

47 men arrested by Vancouver police for allegedly seeking sex with teenage girls

Seven of those arrested have been charged as part of a two-month operation

B.C. hospital apologizes for veteran’s five-day hallway stay

Clinical director of Victoria General Hospital says case of retired veteran ‘definitely excessive’

Speaker Darryl Plecas says ‘justice’ needed for legislature employees

Plecas spoke to media at the opening of a pedestrian and cycling bridge in Abbotsford Wednesday

Advocate hopes B.C. legislature scandal leads to more transparency

‘Depressing’ that it takes a scandal to inspire freedom of information reform, says Sara Neuert

‘Dr. Lipjob’ avoids jail, gets 30-day suspended sentence

She will have to serve the 30 days in prison if she commits a breach during her two-year’s probation

Kootenay boy, 10, brave in the face of cancer

Fernie Ghostriders vs. Kimberley Dynamiters game to raise funds for young fan fighting cancer

B.C.-Alberta healthcare access issues continue across Kootenays

MLA investigates rumours patient transportation services stop at the border

Ex-Mountie involved in Taser death at Vancouver airport sues government

Kwesi Millington claims he acted in accordance with RCMP training

Most Read