The downward slide in BC real estate continues unabated.
The latest report by the British Columbia Real Estate Association show a 23 per cent decline in sales this March compared to March last year.
It’s the same story with prices: The average MLS residential price this March in the province was $687, 720, a decline of 5.4 per cent when compared to March last year.
It is no surprise then that the sales dollar volume also saw a 27.1 per cent decline from the same month last year.
BCREA chief economist Cameron Muir said BC home sales continue to be adversely impacted by federal mortgage policy.
Muir said the B20 stress test has created near ‘recession level’ housing demand despite the province boasting the lowest unemployment rates in a decade.
The stress test requires potential homebuyers to show they will be able to make mortgage payments with the interest rates two percentage points above the current rate.
“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.”
BCREA is calling on the federal government to revisit the B-20 stress test so that more BC families can achieve their dream of home ownership, it says.
There has been a 36.2 per cent increase in the number of listings compared to the same month last year.
