Trending
A red, white, and black flag with a white background.

Mortgage stress test has caused “near recession” housing demand

A man sitting at a desk looking at a graph on a computer.

The impact of the mortgage stress test continues to be shown in home sales in British Columbia.

British Columbia Real Estate Association says there were 5,707 sales through the MLS in March, down 23% year-over-year, while the average price was down 5.4% to $687,720.

“BC home sales continue to be adversely impacted by federal mortgage policy,” said BCREA Chief Economist Cameron Muir. “The erosion of affordability caused by the B20 stress test has created near recession level housing demand despite the province boasting the lowest unemployment rates in a decade.”

Total sales dollar volume was $3.9 billion, a 27.1% decline from the same month last year.

Listings increased 36.2% to 34,295 units from a year earlier and the ratio of sales to active residential listings declined from 29.4% to 16.6%.

Mortgage stress test has caused “near recession” housing demand

“The sharp erosion of affordability caused by the B20 stress test is now creating pent-up demand, as many would-be home buyers are forced to wait on the sidelines,” added Muir. “Unfortunately, new home construction is slowing as well, which will likely lead to another housing supply crunch down the road.”

Post a Comment

Related Articles

The Canadian labour market has undergone significant shifts over the past several months, shaped by slowing economic activity, increasing public sector reliance, and softening wage...

Calgary’s real estate market demonstrated strength in 2024. Despite some seasonal declines, the year was characterized by solid sales activity and robust price growth across...

Most Trending News

The Canadian labour market has undergone significant shifts over the past several months, shaped by slowing economic activity, increasing public sector reliance, and softening wage...

Calgary’s real estate market demonstrated strength in 2024. Despite some seasonal declines, the year was characterized by solid sales activity and robust price growth across...

Calgary’s real estate market is one of Canada’s most dynamic, offering a range of housing options that cater to diverse lifestyles and budgets. Unlike other...