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

Man dies after fall from Johnson Street Bridge

Man climbed railing of the Johnson Street Bridge, lost his balance and fell into the water below

VIATEC’s 2018 “Startup of the Year” heads to Vegas for global spotlight

Victoria-based boat security company Barnacle Systems set for Consumer Electronics Show

Surprise coming to elderly Esquimalt woman who had $1,100 stolen from purse

Man had bumped into her while she was shopping, next thing she knew, the money was gone

Mommy’s Inside Voice: Santa is real

The holidays are a truly magical time of year

Musicians, community programmers wanted for summer concerts and events

City of Victoria adding to roster of pre-qualified, local musicians to perform June to September

Langford elementary school kids test their hand at entrepreneurship

Students sold their own products at a Young Entrepreneurs Fair Friday

POLL: Are you dreaming of a white Christmas?

The rain Vancouver Island is famous for is coming down in buckets,… Continue reading

Greater Victoria Crime Stoppers wanted list for the week of Dec. 11, 2018

Greater Victoria Crime Stoppers is seeking the public’s help in locating the… Continue reading

B.C. animation team the ‘heart’ of new ‘Spider-Man: Into the Spider-Verse’

The animators, largely based in Vancouver, ultimately came up with a creative technique that is drawing praise

Light at the end of the tunnel for UN climate talks

Meeting in Katowice was meant to finalize how countries report their emissions of greenhouses gases

Janet Jackson, Def Leppard, Nicks join Rock Hall of Fame

Radiohead, the Cure, Roxy Music and the Zombies will also be ushered in at the 34th induction ceremony

Supreme Court affirms privacy rights for Canadians who share a computer

Section 8 of the Charter of Rights and Freedoms protects Canadians against unreasonable search and seizure

‘Ghost bikes’ installed to remember teen cyclists who died in Port Alberni

Cycle Alberni installs memorials to remember teens, remind all about road safety

‘I practically begged’: Kootenay woman with breast cancer denied referral to Calgary

Breast cancer patient left to fight disease alone after being denied referral to Calgary

Most Read