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

UPDATED: Air quality and dust advisories ended for Quesnel

Meteorologist Ralph Adams said having both advisories at the same time was unusual

Where the Rivers Meet Country Bluegrass Jamboree: a brief history of the Quesnel festival

The Cariboo Country Bluegrass Society reminisces about their time hosting the jamboree

Federal budget focuses on the middle class

Cariboo-Prince George MP Todd Doherty releases statement calling the budget a cover up.

Forestry Ink: learning about snow fleas

Snow fleas are a sure sign of spring

Quesnel RCMP make high risk arrest on Ritchie Avenue

Nearby homes were evacuated during the hours long negotiation

Edmonton judge rules Omar Khadr’s sentence has expired

Eight-year sentence imposed in 2010 would have ended last October had Khadr remained in custody

Trudeau sells housing plan in visit to hot real estate market in B.C.

Trudeau said the budget contains measures to help first-time buyers

Norway opens probe into why cruise ship ventured into storm

The Viking Sky was headed for southern Norway when it had engine problems on Saturday afternoon

B.C. river cleanup crew finds bag of discarded sex toys

Chilliwack volunteers stumble on unexpected find while removing 600 lbs of trash from riverway

Fired B.C. farmland commission chair backs NDP rule changes

Richard Bullock agrees with Lana Popham, ALC records don’t

Michael Dunahee’s disappearance remains the largest probe in Victoria police history

The four-year old Victoria boy went missing without a trace on March 24, 1991

Kamloops chamber of commerce director let go after controversial Facebook posts

Facebook account had derogatory comments about Muslims, Justin Trudeau

B.C. RCMP officer cleared after Taser incident seriously injures woman

Woman with knives refused to comply with orders therefore officer used appropriate level of force

‘Bikinishe’ swimwear retailer prompts Better Business Bureau warning

Watchdog has gotten dozens of complaints about company, which has been using fake Vancouver address

Most Read