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

Saanich mayor pitches former Emily Carr library as housing site

Residents share concerns, support over Regina Park tent city

Victoria man wins job he was denied after saying he had depression

Transport Canada has been order to give Chris Hughes a high-level job and nearly $500,000

Taxing Vancouver Island

Big Read: find out which communities are paying the lowest and highest taxes on Vancouver Island

Gun, drugs and cash seized in arrest of alleged Victoria fentanyl dealer

Brent Connors is facing nine charges in relation to the investigation

PHOTOS: Oak Bay police officers rescue baby seal found on rocky shoreline

Marina Mammal Rescue Centre recommends residents observe from a distance

VIDEO: Canadian toddler caught practising hockey skills in crib

Eli Graveline is getting praise from far and wide as the internet freaks out of cute throwback video

5 fun things to do this weekend in Greater Victoria

Victoria Ska and Reggae Fest, Ride Don’t Hide, Cordova Bay Day and more

Jett Woo highlights 5 Canucks choices on Day 2 of NHL entry draft

WHL star out of Moose Jaw tabbed in Round 2

In a matter of hours, women in Saudi Arabia will be allowed to drive

Change was announced as a royal decree in 2017 by Crown Prince Mohammen bin Salman

How the Gorge Canada Day Picnic grew from a basement idea to a single-day event with 10,000 visitors

‘We’re going to need more food,’ among lessons from first Gorge Canada Day Picnic

Feds announce measures to protect endangered whale species

Canada’s Whale Initiative is part of the federal government’s $1.5 billion Ocean Protection Plan

Mounties seize 1,500 pot plants in ‘extensive Shawnigan raid

Mounties searched a property in the 4800-block of Goldstream Heights Drive on May 30

Trump sends letter to Trudeau calling for increase in NATO defence spending

The letter comes as tensions between Canada and the United States have risen to a dramatic high

Electoral reform vote in B.C. includes $500,000 each for pro and con groups

A mail-in ballot referendum will take place Oct. 22 to Nov. 30, asking two questions on voting

Most Read