B.C. Finance Minister Carole James presents first quarter financial results, Sept. 10, 2019. (Tom Fletcher/Black Press)

Slow home sales cool B.C. government revenues this year

Finance Minister Carole James releases first 2019 results

A 16 per cent reduction in home sales and a slump in the forest industry have reduced the B.C. government’s estimated surplus by $95 million, Finance Minister Carole James says.

Home sales fell by 16 per cent from April through July, compared to the first quarter of the last fiscal year, James said as she released the B.C. government’s first quarter results for the fiscal year.

Home sales fell by 16 per cent from April through July, compared to the first quarter of the last fiscal year, James said as she released the B.C. government’s first quarter results for the fiscal year.

James said the government will continue to monitor the effect of the speculation and vacancy tax and other measures, watching for housing prices come down so more people can afford to buy a home.

“I don’t think there’s a British Columbian, particularly young people who are trying to get into the market, who would say we have reached the affordability level,” James said.

Comparing the first quarter results to the budget presented by James in February, taxation revenue is $277 million below budget and spending is above. The finance ministry shifted $300 million from contingency funds to yield a surplus forecast of $179 million.

RELATED: 12,000 B.C. residents paying speculation tax

RELATED: B.C. housing prices predicted to fall in 2019

The biggest adjustment in the first quarter is property transfer tax, down $385 million from the budget. That was partially offset by income tax revenue, which came in $215 million more than budgeted.

Despite struggles in the forest industry and continued cooling of the housing market, the province’s private sector economic forecast council expects its annual growth for 2020 to lead the country.

Economic growth is forecast at 2.4 per cent for B.C., compared to 2.2 per cent for Alberta and 1.8 per cent in Ontario, according to council member Bank of Montreal, CIBC, National Bank, Royal Bank, ScotiaBank and TD.


@tomfletcherbc
tfletcher@blackpress.ca

Like us on Facebook and follow us on Twitter.

BC legislature

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Kelowna career fair offers new opportunities

Don’t miss the upcoming Black Press Extreme Education and Career Fair in Kelowna, March 12.

Kelowna to introduce new strategy for community education about supportive housing

The model seeks to enhance community engagement, accessibility and transparency

GoFundMe campaign started for young Kelowna girl in need of service dog

Alena suffered from an in utero MCA stroke, that affected most of the right side of her brain

Summerhill Winery proposes college for sustainable food production

The proposed Culinary College for Humanity will help to develop a sustainable food culture

Kelowna woman reported missing

Kiana Haner Wilk’s family has not been able to contact her since Tuesday evening

VIDEO: B.C. senior recalls ‘crazy’ wartime decision to grab bear cub from den

Henry Martens – now 96 – says he was lucky to be alive after youthful decision to enter a bear’s den

Regional district gives approval for farm worker housing near Summerland

Application is for 41-bedroom facility to be constructed in Meadow Valley area

Trudeau: Time for blockades to end and Indigenous leaders to work with government

Prime minister says situation in Coastal GasLink pipeline dispute is ‘unacceptable and untenable’

RCMP clarifies stance on removing officers from Wet’suwet’en territory in northern B.C.

Police say will remove officers only if hereditary chiefs keep road open to pipeline workers

Goose cull proposed in Vernon

Three options to manage bird populations in popular parks pitched to councillors

COLUMN: Losing and winning a book battle

Recalling a time when outraged parents spoke out against a book on the school curriculum

COLUMN: Acknowledging the freedom to read

We provide full access to material that some might find objectionable

Shuswap protest blockade temporarily lifted following negotiation with CP Rail

Onus placed on Prime Minister Justin Trudeau to respond

Petition slams Victoria councillor who chastised police after Wetsuweten protest

Ben Isitt calls effort to get him suspended is not a ‘reliable barometer of public opinion’

Most Read