(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

Jumbo’s legal boondoggle continues

Province appealing the BC Supreme Court decision

Good wood; Radium lumbers to top prize

Wood WORKS! BC gives honour to Radium at UBCM

Unsanitary change room conditions exposed at Radium’s hot springs pools

Health inspector felt nothing of concern posed a “serious physical or health risk”

Brewer Creek: a fall classic

Summit Trail Makers Society

Live bear cam: Let the fishing begin

Watch bears in Alaska’s Katmai National Park catch their dinner live.

Wartime Wednesdays

Invermere’s Elinor Florence investigates stories from our wartime past

It’s shaping up to be quite a finish in CFL’s West Division standings

The Calgary Stampeders (10-2) are first, four points ahead of the Saskatchewan Roughriders (8-5).

Twice-convicted killer set to inherit multimillion-dollar company found guilty of father’s murder

A Toronto judge ruled that Dellen Millard is guilty of first-degree murder in death of his father,

Campaign seeks to add Farsi to B.C. school curriculum options

Group wants Farsi added to list of nine languages in policy covering second language requirements

Trudeau urges leaders to follow Nelson Mandela’s example at UN tribute

Peace summit in New York marks 100th birthday of former South African president

Senate seats filled in B.C., Saskatchewan

Canada’s newest senators are the first woman to lead the RCMP and a Cree Metis businessman

Newfoundland’s popular ‘merb’ys’ calendar is back

The calendar of burly, bearded mermen posing against scenic backdrops for charity returns

Cap rent increases at inflation rate, B.C. task force recommends

MLAs say drop annual increase that would allow 4.5% rise next year

Most Read