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

‘Bullet missed me by an inch’: Man recounts friend’s killing at Kamloops hotel

Penticton man witnessed Summerland resident Rex Gill’s murder in Kamloops

B.C. BUDGET: Surplus $374 million after bailouts of BC Hydro, ICBC

Growth projected stronger in 2020, Finance Minister Carole James says

Highway 97 north of Summerland could be open by end of week

Detour in place as crews continue to clear rock slide and stabilize area

Summerland victim in Kamloops shooting may be a case of mistaken identity

Rex Gill, 41, was not previously known to Kamloops police unlike second shooting victim

Okanagan ski resort officials displeased with Family Day roll-out

From one peak of the Okanagan to the other, resort officials have raised concerns

VIDEO: 8 things you need to know about the 2019 B.C. budget

Surplus of $247 million with spending on children, affordability and infrastructure

Crash closes highway between Vernon and Lumby

Traffic being routed around the scene

Level nightclub will be closing

Three cougar sightings in Central Okanagan

Two cougars have been reported in Lake Country

Vehicle located in 2018 Shuswap abduction attempt

Chase RCMP say car used has since been sold, suspect still at large

We like it! Readers support the shift in Family Day dates

Readers support the date switch, while Ski Resorts may not

Cougar ‘living’ next door to Okanagan elementary school

Conservation Office has been alerted and monitoring large cat

Dog dies in Kamloops RV fire

According to a fundraiser posted on social media, the cause of the fire was electrical

B.C. BUDGET: Income assistance raise still leaves many below poverty line

$50 per month increase included in funding for poverty and homelessness reduction

Most Read