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

RCMP report theft from industrial vehicle parked in Barriere

On Dec. 7, Barriere RCMP received a report of a theft from… Continue reading

It’s the last day to vote in B.C.’s referendum on electoral reform

Ballots must now be dropped off in person to meet the deadline of 4:30 p.m.

Barriere family airlifted to Vancouver due to carbon monoxide exposure

All members were in stable condition before being transported

Barriere man arrested on outstanding warrants

Kamloops and Barriere RCMP report they have been successful in locatingand arresting… Continue reading

Picket lines are up at Tolko’s Heffley Creek mill

Forestry workers from the Tolko plywood and venner plant in Heffley Creek… Continue reading

Lawyer for Chinese exec detained by Canada says it’s ‘inconceivable’ she would flee

Meng Wanzhou was detained at the request of the U.S. during a layover at the Vancouver airport

Federal government plans examination of coerced sterilization

The Liberals have been pressed for a rapid response to recent reports on the sterilizations

Huitema, Cornelius named 2018 Canadian Youth International Players of the Year

Huitema was captain of Canada’s fourth-place team at this year’s FIFA U-17 Women’s World Cup

Canada not slowing emissions from oil and gas: environmental groups

New report released at the United Nations climate talks in Poland

Liberal Party moves Trudeau fundraiser from military base

The fundraiser is scheduled for Dec. 19, with tickets costing up to $400

Pipeline protesters arrested at B.C. university

Three protesters were arrested after TRU property allegedly vandalized with red paint

Goodale to ‘examine’ transfer of Rafferty to medium-security prison

Michael Rafferty was sentenced to life in prison in 2012 in the kidnapping, sexual assault and first-degree murder of Tori Stafford

‘Abhorrent’ condition of autistic B.C. boy shows flaws in care system: report

‘Charlie’ was underweight and ‘covered in feces’ when he was removed from his mom’s care

Minister appoints former CIRB chair to resolve Canada Post labour dispute

Postal workers engaged in weeks of rotating walkouts

Most Read