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

Two-year-old attacked by cougar in Cascade Falls Regional Park

Boy not seriously injured in incident on Monday afternoon near Mission

Trial date postponed for man charged with killing Abbotsford police officer

Oscar Arfmann’s trial pushed back from January to May 2019

VIDEO: SUV crashes into Downtown Abbotsford store

Front window of Jazz-Ma-Tazz destroyed in afternoon crash

Publication ban lifted on Letisha Reimer’s name

Reimer’s family had supported an application by The News to lift ban

Mission girl gets her wish to go to Disneyworld

Children’s Wish Foundation, Vancouver Christmas Market and Vancouver Canucks help raise funds

Story of the Year: Deadly Humboldt Broncos bus crash

The Canadian Press annual survey of newsrooms across the country saw 53 out of 129 editors cast their votes for the Humboldt Broncos bus crash.

Emergency task force calls for safe supply of drugs in Vancouver to prevent ODs

Dr. Patricia Daly says more people are dying alone in the city than elsewhere in the province

‘A start:’ Alberta critical of Ottawa’s $1.6B package for ailing energy sector

A further $150 million is to be used for clean growth and infrastructure projects

New B.C. Lions coach DeVone Claybrooks adds eight to coaching staff

DeVone Claybrooks has filled out his staff for the 2019 season

Road to the World Juniors leads through B.C.

Finland plays Denmark on Wednesday, United States takes on Czech Republic on Saturday

Trump signs order to create US Space Command

President Donald Trump signs an executive order to create a U.S. Space Command.

Groups preparing new pipeline legal challenge, argue government’s mind made up

A Vancouver-based environment charity is readying itself to go back to court if the federal government reapproves the Trans Mountain pipeline expansion.

Notorious Toronto triple killer gets third consecutive life sentence

Dellen Millard gets third consecutive life sentence for father’s death.

‘Subdued’ housing market predicted in B.C. through 2021: report

The Central 1 Credit Union report predicts “rising but subdued sales” over the next three years, with little movement in median home prices.

Most Read