Mortgage Policy Changes Hit Affordability Hard

The British Columbia Real Estate Association (BCREA) reports that a total of 8,837 residential unit sales were recorded by the Multiple Listing Service® (MLS®) across the province in May, a 28.7 per cent decrease from the same month last year. The average MLS® residential price in BC was $739,783, down 1.7 per cent from May 2017. Total sales dollar volume was $6.54 billion, a 30 per cent decline from May 2017.

“BC home sales continued to slow in May because of more stringent qualifications for conventional

borrowers,” said Cameron Muir, BCREA Chief Economist. “The changes in mortgage policy are taking their toll on housing demand, not only in British Columbia, but across the country by reducing household purchasing power and housing affordability.”

While the decline in consumer demand has lifted the inventory of homes for sale, total active residential listings in the province are still relatively low by historical comparison.

Year-to-date, BC residential sales dollar volume was down 13.8 per cent to $26.4 billion, compared with the same period in 2017. Residential unit sales decreased 16.6 per cent to 35,976 units, while the average MLS® residential price was up 3.4 per cent to $733,616.

 May 2018 Year-to-Date BC Residential Multiple Listing Service® Data by Board 

Board

Dollar Volume (000s)

Unit Sales

Average Price

 

2018

($)

2017

($)

% change

2018

2017

%

change

2018

($)

2017

($)

% change

BC Northern

469,174

456,218

2.8

1,631

1,650

-1.2

287,660

276,496

4

 

Chilliwack

 

746,799

 

732,522

 

1.9

 

1,432

 

1,645

 

-12.9

 

521,507

 

445,302

 

17.1

Fraser Valley

5,534,251

6,179,206

-10.4

7,329

9,077

-19.3

755,117

680,754

10.9

 

Greater Vancouver

 

12,903,958

 

16,149,318

 

-20.1

 

12,159

 

15,688

 

-22.5

 

1,061,268

 

1,029,406

 

3.1

Kamloops

466,668

467,237

-0.1

1,224

1,300

-5.8

381,265

359,413

6.1

 

Kootenay

 

362,329

 

356,071

 

1.8

 

1,187

 

1,175

 

1

 

305,248

 

303,039

 

0.7

 

Okanagan Mainline

 

1,639,849

 

1,771,628

 

-7.4

 

3,143

 

3,652

 

-13.9

 

521,746

 

485,112

 

7.6

Powell River

50,271

43,438

15.7

137

146

-6.2

366,944

297,521

23.3

South Okanagan

372,698

379,846

-1.9

884

994

-11.1

421,604

382,139

10.3

Northern Lights

35,478

38,081

-6.8

139

157

-11.5

255,234

242,554

5.2

Vancouver Island

1,682,555

1,638,647

2.7

3,660

3,910

-6.4

459,714

419,091

9.7

Victoria

2,128,546

2,409,085

-11.6

3,051

3,760

-18.9

697,655

640,714

8.9

Provincial Totals*

26,392,574

30,621,295

-13.8

35,976

43,154

-16.6

733,616

709,582

3.4

* Numbers may not add due to rounding

 Provided by: BCREA

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The data relating to real estate on this website comes in part from the MLS® Reciprocity program of either the Real Estate Board of Greater Vancouver (REBGV), the Fraser Valley Real Estate Board (FVREB) or the Chilliwack and District Real Estate Board (CADREB). Real estate listings held by participating real estate firms are marked with the MLS® logo and detailed information about the listing includes the name of the listing agent. This representation is based in whole or part on data generated by either the REBGV, the FVREB or the CADREB which assumes no responsibility for its accuracy. The materials contained on this page may not be reproduced without the express written consent of either the REBGV, the FVREB or the CADREB.