B.C. home sales continue to decline: real estate association

Impacts of mortgage stress tests are still being felt

Home sales are continuing their downward slide this year, according to numbers released by the B.C. Real Estate Association Thursday.

The figures show that residential sales were down by 33 per cent this September, compared to the same month last year.

The biggest drop was seen in the South Okanagan with a 49 per cent drop and Greater Vancouver with a 43 per cent drop.

The total value of all homes sold was also down by 34 per cent.

READ MORE: Move over millennials: Generation Z is coming for your real estate

The association said that the continued downtrend was a consequence of the new mortgage stress test.

“B.C. home sales continue at a slower pace compared to last year,” said chief economist Cameron Muir.

“The impact on affordability and purchasing power caused by the mortgage stress test and moderately higher interest rates are negating the effect of the extraordinarily strong performance of B.C’.s economy over the last five years.”

The mortgage qualification stress test was introduced in January and 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.

Across B.C., home prices were down by 1.1 per cent compared to September last year.

The biggest drop was seen in the South Okanagan, where home prices dropped by 14.5 per cent.

Most regions of the province saw a moderate increase but Vancouver Island home values went up by 11.4 per cent and Powell River shot up by 19 per cent.

Greater Vancouver homes remained the most expensive at an average price of $1,029,401,

The cheapest homes in B.C. were in the north, with an average value of $262,345.


@katslepian

katya.slepian@bpdigital.ca

Like us on Facebook and follow us on Twitter.

Just Posted

35 of 87 dogs in 2018 Williams Lake seizure were euthanized due to behavioural issues, BCSPCA confirm

The dogs did not respond to the behaviour modification and remained terrified of humans

CRD directors look for solutions to growing rural crime trend

“The bulk of these break and enters seem to be drug-fuelled,” CRD board chair Margo Wagner

B.C. dog breeder banned again after 46 dogs seized

The SPCA seized the animals from Terry Baker, 66, in February 2018

B.C. offers early retirement, training fund for forest workers

Communities eligible for $100,000 for permanent closures

‘I shouldn’t have done it,’ Trudeau says of brownface photo

Trudeau says he also wore makeup while performing a version of a Harry Belafonte song

B.C. ‘tent city’ disputes spark call for local government autonomy

UBCM backs Maple Ridge after province overrules city

B.C. drug dealers arrested after traffic stop near Banff turns into helicopter pursuit

Antonio Nolasco-Padia, 23, and Dina Anthony, 55, both well-known to Chilliwack law enforcement

B.C. MLA calls on province to restrict vaping as first related illness appears in Canada

Todd Stone, Liberal MLA for Kamloops-South Thompson, introduced an anti-vaping bill in April

Chilliwack woman wins right to medically assisted death after three-year court battle

Julia Lamb has been the lead plaintiff in a legal battle to ease restrictions on Canada’s assisted dying laws

B.C. bus crash survivor petitions feds to fix road where classmates died

UVic student’s petition well over halfway to 5k signature goal

NDP, Liberals promise more spending, while Tories promise spending cuts

Making life more affordable for Canadians a focus in the 2019 election

Most Read