Stricter mortgage qualification legislation continues to play a part in the real estate market across Greater Vancouver and the province as a whole, according to new data from the British Columbia Real Estate Association.
Total home sales in the city were down 37.6% year-over-year in June, with 2,467 units sold in the month. By comparison, 3,953 sales were recorded in the same period last year. Year-to-date, the number of units sold was down 25.5%, from 19,641 to 14,626.
Across British Columbia, June home sales were down 32.5%, from 11,672 in June 2017 to 7,884. Year-to-date, unit sales were down 20% over the same period last year.
“The impact of the B20 stress test is still being felt across the province, Brendon Ogmundson, BCREA’s deputy chief economist, said, referring to OSFI’s stricter mortgage qualification rules that came into effect January 1.
“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.”
Despite the plunge in sales, prices for homes sold in Greater Vancouver in June were still up compared with the same month last year. The average price was $1,068,559, compared with $1,053,655 in June 2017; this represents an increase of 1.4%. Province-wide, the average sale price was $716,326, which is down 1.3% year-over-year from $725,748 last year.