Stress test impact still being felt across BC

Home sales in British Columbia continue to show weakened demand following the introduction of tighter mortgage rules earlier this year.

There were 7,884 residential unit sales recorded by the province’s MLS in June, down 32.5% year-over-year according to data from the British Columbia Real Estate Association.

Prices were also impacted with a 1.3% annual decline in the average MLS residential price in the province to $716,326.

The result was a total sales dollar volume of $5.6 billion in June, down 33% from June 2017.

“The impact of the B20 stress test is still being felt across the province,” said Brendon Ogmundson, BCREA Deputy Chief Economist. “Lower demand as the result of higher mortgage rates and stringent mortgage qualification rules are bringing most markets around the province back into balanced conditions.”

Year-to-date, BC residential sales dollar volume was down 18% to $32 billion, compared with the same period in 2017. Residential unit sales decreased 20% to 43,863 units, while the average MLS residential price was up 2.4% to $730,492.

Inventory remains low by historic standards in many parts of BC including Vancouver and the Okanagan region although June did see a 21% rise in active listings across the province.

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