B20 has tightened demand but done little for supply in BC

B20 has tightened demand but done little for supply in BC

B20 has tightened demand but done little for supply in BC

Homes sales fell by almost a quarter in British Columbia last month but supply remained tight and prices increased.

Figures from the British Columbia Real Estate Association (BCREA) show that sales of 7,409 in March meant a 24.6% decrease from a year earlier while prices gained 5.3% to an average price of $726,930.

“More burdensome mortgage qualifications are having the predictable effect of swiftly curbing housing demand,” said Cameron Muir, BCREA Chief Economist. “You simply cannot pull as much as 20% of the purchasing power away from conventional mortgage borrowers and not create a downturn in consumer demand.”

Even with lower demand, supply of homes remains low across most of the province, with little change from a year ago and total inventory at or near a 12-year low.

Year-to-date, BC residential sales dollar volume was down 1.7 per cent to $13.9 billion, compared with the same period in 2017. Residential unit sales decreased 9.4 per cent to 18,927 units, while the average MLS® residential price was up 8.5 per cent to $732,243.


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