A real estate sold sign is shown outside a house in Vancouver, Tuesday, Jan.3, 2017. The Canadian Real Estate Association says home sales climbed 2.2 per in December compared with November as they recovered from a dip following the introduction of new mortgage rules. THE CANADIAN PRESS/Jonathan Hayward

Strict mortgage rules slow B.C. home sales

BC Real Estate Association says sales dropped nearly six per cent last month

February was a slow month for B.C. real estate, with sales dropping nearly six per cent compared to the same month last year.

In a new release Wednesday, the BC Real Estate Association said despite housing prices being up 8.8 per cent, sales were down 5.7 per cent.

More stringent mortgage qualification rules for conventional borrowers are dampening housing demand in the province,” said chief economist Cameron Muir.

“Since the new rules came into effect, B.C. home sales have fallen more than 26 per cent, on a seasonally adjusted basis.”

The average residential home price across the province was $748,327.

The new rules mean all borrowers must qualify for a mortgage based on either the five-year benchmark rate or their lender’s actual rate plus two per cent, whichever is higher.

The change applies to all mortgages, new or renewed, even if the down payment exceeds 20 per cent.


@katslepian

katya.slepian@bpdigital.ca

Like us on Facebook and follow us on Twitter.

Just Posted

Saanich entrepreneurs face off against the Dragons on television

CBC segment featuring Endur Apparel business partners airs Jan. 24

Langford Fire Rescue partners with Wounded Warriors to focus on mental health

B.C. organization addresses mental health of veterans, first responders and their families

Amalgamation advocate predicts citizens assembly in place by late spring

Shellie Gudgson promises Amalgamation Yes won’t participate in assembly

EDITORIAL: Safe water should trump traffic plan

Emergency Malahat route through Sooke watershed a non-starter

New orca calf in Salish Sea ‘healthy and active’

Birth cause for celebration but things still dire genetically, expert says

Lantzville soccer player a first-round major-league draft pick

Callum Montgomery goes fourth overall to FC Dallas in MLS SuperDraft

Razor burn: Gillette ad stirs online uproar

A Gillette ad for men invoking the #MeToo movement is sparking intense online backlash

Feds poised to bolster RCMP accountability with external watchdog

Long-anticipated move is the latest attempt at rebuilding the force following years of sagging morale

Canada needs a digital ID system, bankers association says

The Department of Finance last week officially launched its public consultation on the merits of open banking

Second fatal crash occurs in Alberni Valley

Traffic on Highway 4 is being re-routed as investigators are en route

Indigenous energy summit includes session on pipeline ownership options

Steven Saddleback of the Indian Resource Council says a session will feature presentations on financing models

Japanese grand champion Kisenosato retires from sumo

The 32-year-old Kisenosato was the first Japanese-born wrestler in 19 years to gain promotion to sumo’s highest rank

UPDATE: Accused B.C. high school killer found fit to stand trial

Gabriel Klein is accused in the 2016 stabbing death of Letisha Reimer at Abbotsford Senior Secondary

Most Read