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

Former Times editor outlines his election platform

Keith McNeill officially in the running

Declaration of candidates is in

List of those running for mayor and council firmed up

Municipal spending outpaces population growth 4-fold in B.C.: report

Canadian Federation of Independent Business has released its annual operational spending report

Public remided to use caution in areas burned by wildfires

Post-wildfire areas have own set of hazards

VIDEO: Messages of hope, encouragement line bars of B.C. bridge

WARNING: This story contains references to suicide and may not be appropriate for all audiences.

The longest week: Carolinas worn out by Florence

Frustration and sheer exhaustion are building as thousands of people wait to go home seven days after the storm began battering the coast.

Vancouver councillors move ahead with policy for duplexes on detached home lots

Mayor Gregor Robertson says the decision is another step toward adding homes in the city for the so-called “missing middle.”

Canada’s goal is to play in a medal game at World Cup in Spain

The 2014 women’s world basketball championships were a coming out party for Canada.

World Anti-Doping Agency reinstates Russia

There was no mention of Russia publicly accepting a state-sponsored conspiracy to help its athletes win Olympic medals by doping.

Nanaimo’s Tilray pot stock continues rising, firm now worth more than $21 billion US

The B.C. company’s shares have risen more than 1,000 % since its initial public offering in July

Fresh-faced Flames fend off Canucks 4-1

Vancouver drops second straight NHL exhibition contest

VIDEO: B.C. deer struggles with life-preserver caught in antlers

Campbell River resident captures entangled deer on camera

Most Read