B.C. residential sales ‘continue to recover’ from policy shock: BCREA

Home transactions are higher than a year ago but still down compared with pre-mortgage stress test activity

Glacier Media Real Estate
September 12, 2019

real estate
Photo Dan Toulgoet

Residential resale transactions across B.C. “continue to recover” from the policy shock and subsequent downturn caused by the mortgage stress test, the B.C. Real Estate Association stated September 12.

Home sales around the province totalled 7,093 in August, which is 4.9 per cent higher than in August 2018

BCREA also reported that the average residential price in the province was $685,575 last month, an increase of 2.6 per cent from August 2018. The increase in both prices and activity last month meant that total sales dollar volume was $4.86 billion, a 7.6 per cent jump from the same month last year.

The graph below shows how policy announcements have affected the province’s real estate market, with the foreign buyer tax introduced in August 2016 (although sales were falling from the first half of 2016) and then sales falling off a cliff in January 2018, when the mortgage stress test was launched.

BCREA BC home sales August 2019
Source: BCREA Economics

“B.C. home sales continue to recover from a policy-driven downturn,” said Brendon Ogmundson, BCREA’s deputy chief economist. “Home sales have been rising through the spring and summer, but still remain well below pre-B20 stress test levels.”

The association also reported that “overall market conditions remained in a balanced range with a sales-to-active listings ratio of about 18 per cent.”

The August sales and price statistics follow BCREA’s September 5 forecast for the housing market into 2020. It predicted that the slow sales in the first half of the year would bring the province’s overall activity through 2019 down, but that sales and prices would both modest recover in 2020.

To read the full August sales, price and listings statistics broken down by each B.C. board region, click here.

Joannah Connolly is editorial director of Glacier Media Real Estate, Glacier Media's real estate division. Joannah writes and curates real estate news for Glacier Media's local newspaper websites, including the Vancouver Courier, Times Colonist, Prince George Citizen, North Shore News, Burnaby Now, Tri-City News and others. She also writes and oversees editorial content in Real Estate Weekly Homes, West Coast Condos & Homes, Western Investor and Glacier's special real estate publications. A dual Canadian-British citizen, Joannah has 23 years of journalism and editing experience in Vancouver and London, with a background in construction, architecture, healthcare and business media. Joannah has appeared on major local TV outlets as a real estate commentator, has moderated and spoken on various industry panels, and spent two years hosting the Real Estate Therapist talk radio show on Vancouver's Roundhouse Radio.
Copyright © Western Investor

Email to a Friend

Most Popular
Get the WesternInvestor.com Newsletter