(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

Freedom 55 for Big White Ski Resort near Kelowna

What started as a small rural ski hill in 1963 has grown into a premier North American ski resort

Lake Country boy helps feed families in need

Jaymz, 10 and his mother Lisa Daniel are collecting donations for the

New, protective roof for burnt-out historic Kelowna building

The city spending $29,000 to protect the charred remains of the Fleming House over the winter

Sagmoen back in Vernon court this week

Curtis Wayne Sagmoen will appear on all three Vernon matters this week

Crash temporarily closes Trans Canada Highway near Sicmaous

DriveBC reported the accident at 3 a.m. Monday, Dec. 10

Your morning news in 90: Dec. 10, 2018

Tune in for 90 seconds to get the top headlines for the Okanagan, Shuswap and Similkameen.

Protesters take to Highway 1 over migration issues

Five people protested Canada’s plans to sign the United Nations’ Global Compact on Migration

Break-in at home of detained Chinese Huawei executive

Meng Wanzhou was detained in Vancouver on America’s request

Natural gas rates will go up in B.C. on Jan. 1

Regions could pay up to $68 more

Top House Dems raise prospect of impeachment, jail for Trump

It could be an “impeachable offense” if it’s proven that President Donald Trump directed illegal hush-money payments to women during the 2016 campaign.

Winter rolls into the Okanagan to stay

Environment Canada is calling for two-to-four centimetres of snow from Penticton to Salmon Arm

Macron addresses France amid protests; is it too late?

Paris monuments reopened, cleanup workers cleared debris and shop owners tried to put the city on its feet again Sunday.

Most Read