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

Taking life one step at a time with Little Feet

Horrific accident changed Heather Williams’ life drastically in the blink of an eye

Furstenau pleased with new direction on environmental assessments

But Cowichan valley’s MLA says more work to be done

Cowichan Valley dairy farmer wary as NAFTA talks continue

Chris Groenendijk fears for the industry’s future

N. Cowichan, Duncan considering community “gateway”

Feature would be at the southwest corner of Beverly Street and the Trans Canada Highway

Duncan denies emergency shelter for women on Cairnsmore Street

Will look at a mobile shelter for women instead

VIDEO: Deer struggles with life-preserver caught in antlers

Campbell River resident captures entangled deer on camera

VIDEO: Deer struggles with life-preserver caught in antlers

Campbell River resident captures entangled deer on camera

Trans Mountain completes Burrard Inlet spill exercise

Training required, some work continues on pipeline expansion

First court date for B.C. man accused of murdering Belgian tourist

Family and friends of Sean McKenzie, 27, filled the gallery for brief court appearance in Chilliwack

Pot, cash, mansions: Judge divvies up illegal estate of divorcing B.C. couple

The Smiths ran a multi-million marijuana operation that spanned three counties

‘Little Feet’ book documents B.C. woman’s horrific 2001 accident

Heather Williams has documented the two profound stages beforeand after the accident

Around the BCHL: Nanaimo Clippers acquire defenceman from Langley Rivermen

Around the BCHL is a look at goings on around the BCHL and the junior A world.

B.C. co-op develops tech to help prevent ODs, especially for alone users

Brave Technology has been awarded $200,000 in the Ohio Opioid Technology Challenge

Recent jump in U.S. butter imports? All smooth, says Canadian dairy farmers

U.S. farmers recently enjoyed extra access to the Canadian market

Most Read