(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

Being Young; Tackling the ‘second-week slump’

Defeating the slump is difficult.

Along the Fraser: A flawed made-in-B.C.-plan for wild salmon

‘The greatest value B.C. places on wild salmon is cultural.’

Marauders to play in championship Saturday

Pitt Meadows hosting senior boys basketball tournament

Maple Ridge, Pitt Meadows part of speculation and vacancy tax

Watch the mail, fill out the form, or you’ll be taxed

Another Burrard wins a field lacrosse scholarship

Cooke playing for Newbury Wolves in South Carolina

VIDEO: Students in MAGA hats mock Native American at Indigenous Peoples March

Diocese in Kentucky says it is investigating the matter, caught on video by onlookers

CONSUMER REPORT: What to buy each month in 2019 to save money

Resolve to buy all of the things you want and need, but pay less money for them

UPDATE: B.C. woman and boy, 6, found safe, RCMP confirm

Roseanne Supernault says both she and her six-year-old nephew are fine and she has contacted police

PHOTOS: Women’s Marches take to the streets across B.C. and beyond

Women and allies marched worldwide protesting violence against women, calling for equality

VIDEO: Giants wrap southern swing with 6-4 win in Spokane

The Lower Mainland-based hockey team defeated the Chiefs Friday night.

Anxiety in Alaska as endless aftershocks rattle residents

Seismologists expect the temblors to continue for months, although the frequency has lessened

Women’s March returns across the U.S. amid shutdown and controversy

The original march in 2017, the day after President Donald Trump’s inauguration, drew hundreds of thousands of people

Federal Liberals announce former B.C. MLA as new candidate in byelection

Richard Lee will face off against federal NDP leader Jagmeet Singh

No winning ticket in $10 million Lotto Max jackpot

No win in Friday night’s draw means the next Lotto Max draw will be approximately $17 million

Most Read