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

Surrey RCMP searching for missing boy, 11, last seen Thursday

Dominic Mattie was last seen at 5 p.m. in the 13500-block of Gateway Drive in Surrey

South Surrey & White Chamber golf tournie in memory of Cliff Annable

Part proceeds to benefit White Rock pier reconstruction fund

Surrey Mountie won’t face charges for scooter scuffle

The Surrey-based IIO has decided not to forward the case to Crown counsel for review

High-risk sex offender released into Surrey

Earon Wayne Giles, a Newton “tag-team rapist,” was released from prison Friday and is now living in Surrey

Pedestrian seriously injured in Surrey traffic crash

A 54-year-old man was hit by a car early Thursday evening while crossing Highway 10 at 152nd Street

VIDEO: Protesters in Penticton gather to rally against sleeping-on-sidewalk bylaw

The proposed bylaw would outlaw sitting or lying on the city’s downtown sidewalks

Kamloops girl, 9, recovering from carbon monoxide poisoning now out of ICU

Her mother who was sleeping in the same tent with her did not survive

‘I think he’s still alive’: B.C. mom pleads for help finding son last seen a month ago

Family offering $5,000 reward for information leading to the safe return of Tim Delahaye

New poll suggests one-third don’t want politicians to wear religious symbols

Local politicians shouldn’t be allowed to wear hijabs, crucifixes or turbans on the job, survey suggests

Raptors fans far from home adjust plans to watch pivotal playoff game

Raptors currently lead the playoff series 3-2, and a win Saturday would vault them into NBA finals

PHOTOS: First responders in Fernie rescue baby owl who fell from nest

The baby owl’s inability to fly back to its nest prompted a rescue by first responders

Five takeaways from the Court of Appeal ruling on B.C.’s pipeline law

It’s unclear how many tools are left in B.C.’s toolbox to fight the project

Burnaby facility to dispose of 1,500 tonnes of Canada’s trash from Philippines

All 103 containers will be disposed of properly within Canada before the end of the summer

Most Read

l -->