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.



Like us on Facebook and follow us on Twitter.

Just Posted

Shinedown to debut new music in Penticton

Penticton concert-goers will be the first to hear a new song from Shinedown’s sixth album

Mudslide at South Okanagan golf course

A mudslide occurred at Fairview Mountain Golf Club in Oliver

SD67 fills 2-year gap in Aboriginal education administration

District also announces shuffling of school admin, with Princess Maggie VP heading to Pen High

Prescribed burns to close Penticton channel path

The burns will close the path from 6 a.m. to 9 p.m. Wednesday and Thursday next week

What’s happening

Find out which events are taking place in the Okanagan and Shuswap this weekend

Canucks sing the Blues as they fall to St. Louis 4-1

Berglund nets two, including the game-winner, to lift St. Louis over Vancouver

Calving season brings hope for Cariboo ranchers

Still a lot of work ahead to recover from the wildfires

Canada’s Kaetlyn Osmond wins figure skating world title

The 22-year-old fwon the women’s singles crown with her Black Swan routine

B.C. pooches celebrate National Puppy Day

Check out some of the submissions from around B.C. for National Puppy Day 2018

Similkameen residents face long wait for bus solution

Scheduling key for Similkameen bus riders in proposed B.C. Transit Penticton to Kelowna expansion

Rainstorm causes road flooding in Naramata and Okanagan Falls

Flood assessments conducted in Okanagan Falls and Naramata

Photos: Salmon Arm celebrates Paralympic champion Natalie Wilkie

Hometown hero welcomed home with parade, recognition ceremony at city hall

Most Read