Demand for homes in Greater Vancouver and across British Columbia as a whole was down in March due in large part to more stringent federal mortgage qualification regulations that became effective January 1, according to a new report from the British Columbia Real Estate Association

A total of 2,551 residential units changed hands in March in Greater Vancouver, which is a drop of almost 30% compared with the 3,632 homes sold in the same month last year. Across the province, 7,409 units sold, which is down almost 25% compared with 9,825 units in March 2017.

“More burdensome mortgage qualifications are having the predictable effect of swiftly curbing housing demand,” said BCREA chief economist Cameron Muir.

“You simply can not pull as much as 20% of the purchasing power away from conventional mortgage borrowers and not create a downturn in consumer demand.”

The average sales price across Greater Vancouver was $1,022,523 for all home types – up 3.1% compared with $991,690 in March 2017. Across the province, the average price increased 5.3% to $726,930 from $690,545 in the same period last year.

In the report, the BCREA said that although demand has slipped, supply remains low in most areas across the province. The total number of active listings remains at a 12-year low, which is why home prices are continuing to climb, despite falling demand.

March Vancouver Home Sales Down 30% After New Mortgage Rules Dampen Demand by Emma Crawford Hampel | Business in Vancouver