{"id":10390,"date":"2018-09-24T11:11:24","date_gmt":"2018-09-24T18:11:24","guid":{"rendered":"http:\/\/www.roryc.ca\/blog\/?p=10390"},"modified":"2018-09-15T09:48:09","modified_gmt":"2018-09-15T16:48:09","slug":"bcrea-the-downturn-in-housing-demand-by-the-mortgage-stress-test-is-in-the-past","status":"publish","type":"post","link":"https:\/\/www.roryc.ca\/blog\/2018\/09\/bcrea-the-downturn-in-housing-demand-by-the-mortgage-stress-test-is-in-the-past\/","title":{"rendered":"BCREA The Downturn in Housing Demand by the Mortgage Stress-Test is in the Past"},"content":{"rendered":"<p style=\"text-align: justify;\">So much for tougher mortgage rules biting into buyer demand in BC\u2019s housing market.<\/p>\n<p style=\"text-align: justify;\">That\u2019s mostly a thing of the past, at least so far as the British Columbia Real Estate Association (BCREA) is concerned.<\/p>\n<p style=\"text-align: justify;\">\u201cThe downturn in housing demand induced by the mortgage stress-test is now largely behind us,\u201d says Cameron Muir, BCREA\u2019s Chief Economist, in a statement.<\/p>\n<p style=\"text-align: justify;\">\u201cThe BC Housing market is evolving along the same path blazed by Ontario and Alberta, where the initial shock of the mortgage stress-test is already dissipating, leading to increasing home sales,\u201d he explains.<\/p>\n<p style=\"text-align: justify;\">Sales activity in Ontario\u2019s largest market, the Greater Toronto Area, was up 8% annually in August, and the Toronto Real Estate Board suggests buyers who had moved to the sidelines earlier this year after new lending rules were introduced are once again wading into the market.<\/p>\n<p style=\"text-align: justify;\">As of January 1st this year, more prospective borrowers were subjected to mortgage stress testing as rules drafted by the Office of the Superintendent of Financial Institutions, a federal watchdog, came into effect.<\/p>\n<p style=\"text-align: justify;\">Under Guideline B-20, stress testing was expanded to include uninsured mortgages with downpayments of 20% or more, rather those for which a downpayment of less than 20% was put up.<\/p>\n<p style=\"text-align: justify;\">Flash forward to August, and 6,743 homes changed hands across the province, down 26.4% from a year before, according to BCREA\u2019s most recent Statistical Release.<\/p>\n<p style=\"text-align: justify;\">August\u2019s sales tally was also down from July, when 7,055 sales were recorded through BCREA\u2019s MLS system. However, that month-over-month decline was less dramatic than the fall from June, when transactions totalled 8,837.<\/p>\n<p style=\"text-align: justify;\">However, it\u2019s the seasonally adjusted sales figures that has BCREA noting the impact from mortgage rules has waned, the board\u2019s Chief Economist Cameron Muir confirms in an email.<\/p>\n<p style=\"text-align: justify;\">He notes that on a seasonally adjusted basis August transactions were up 2.5% from July and 3.5% from June.<\/p>\n<p style=\"text-align: justify;\">Despite sales activity remaining far off from levels recorded throughout 2017, the overall resale market has remained relatively balanced. It\u2019s something at least one expert recently attributed to the condo segment, which continues to attract buyers who simply can\u2019t afford any other type of property.<\/p>\n<p style=\"text-align: justify;\">Nonetheless, there are only seven areas of Metro Vancouver, the province\u2019s biggest market by far, where the average household could still afford a condo in August, according to a study.<\/p>\n<p style=\"text-align: justify;\">The province\u2019s sales-to-active listings ratio was 18.4% in August, a number generally in line with a balanced market.<\/p>\n<p style=\"text-align: justify;\">In terms of pricing, BC homes went for an average of $669,776 last month, a decrease of 1.2% from August 2017. Yet year-to-date home prices are up 1.7% compared to the first eight months of the previous year.<\/p>\n<p style=\"text-align: justify;\">By the end of August, $26.4 billion worth of residential real estate had been sold in the province, representing a 13.8% decrease from the same period last year.<\/p>\n<p><a href=\"https:\/\/www.livabl.com\/2018\/09\/fallout-from-new-mortgage-rules-bc-real-estate.html\" target=\"_blank\" rel=\"noopener\">Fallout from New Mortgage Rules is Mostly A Thing of The Past for BC Real Estate<\/a> by Josh Sherman | Livabl<\/p>\n","protected":false},"excerpt":{"rendered":"<p>So much for tougher mortgage rules biting into buyer demand in BC\u2019s housing market. That\u2019s mostly a thing of the past, at least so far as the British Columbia Real &hellip; [<a href=\"https:\/\/www.roryc.ca\/blog\/2018\/09\/bcrea-the-downturn-in-housing-demand-by-the-mortgage-stress-test-is-in-the-past\/\">read more<\/a>]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8],"tags":[],"class_list":["post-10390","post","type-post","status-publish","format-standard","hentry","category-market-updates"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>BCREA The Downturn in Housing Demand by the Mortgage Stress-Test is in the Past &#8226; Rory C Real Estate | Oakwyn Realty<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.roryc.ca\/blog\/2018\/09\/bcrea-the-downturn-in-housing-demand-by-the-mortgage-stress-test-is-in-the-past\/\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:title\" content=\"BCREA The Downturn in Housing Demand by the Mortgage Stress-Test is in the Past &#8226; Rory C Real Estate | Oakwyn Realty\" \/>\n<meta name=\"twitter:description\" content=\"So much for tougher mortgage rules biting into buyer demand in BC\u2019s housing market. 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