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

VIDEO: Coast Mountains School District runs mobile trades program

Trades van travels to Terrace, Kitimat, Hazelton, Stewart and beyond to bring projects to kids

Joseph family remembers their fallen son

Chris Joseph passed away in a car crash on June 2. He was 26.

Sister’s clubs help win Prince Rupert tournament

Sarah Kerbrat, home from veterinarian school in New Zealand, wins Prince Rupert golf tournament.

Telkwa Mayor Repen returns

Repen named semi-finalist in global competition.

Vet to North pets

Smithers vet hopes community support will help her bring vet service to rural North B.C.

Pigs crash yoga class in B.C.

First it was goats, now it’s pigs — you can get downward dog with the whole farm in Aldergrove

Judge dismisses DNA request in Cranbrook triple murder case

Dean Christopher Roberts must appeal directly to the federal Minister of Justice, reads ruling.

Yes, we could use a soft drink tax

NDP rejects useful tax advice because it’s not popular

Canada sweeps China in Pacific Rim Basketball Classic

National men’s team beats China twice over weekend in Vancouver and Victoria

Rainbow crosswalk in B.C. defaced 10 days after installation

Surrey’s first rainbow crosswalk has been defaced sometime over the weekend

Closing arguments expected in trial for twice convicted Canadian killer

Crown, defence expected to give closing arguments in Millard murder trial

Canadians undertake the world’s most dangerous peacekeeping mission

A dozen Canadian peacekeepers arrive in Mali as yearlong mission begins

U.S. justices won’t hear case of anti-gay marriage florist

The case is regarding whether business owners can refuse on religious grounds to comply with anti-discrimination laws

Kangaroo stops play during Australian soccer match

The women’s game stopped play for more than 30 minutes on Monday due to the kangaroo

Most Read