Mortgage regs are still punishing BC real estate HomeMarket Update

Home sales in British Columbia were down 23.9% in July compared to a year earlier.

Data from the British Columbia Real Estate Association shows that there were 7,055 sales through the MLS system and the average MLS price was down 0.4% to $695,990.

Total sales dollar volume was down 24.2% year-over-year to $4.9 billion.

Although a reduction in intense competition is good news for buyers, especially first-time buyers, there is a clear reason for the continued decline in the province’s home sales.

“The BC housing market continues to grapple with the sharp decline in affordability caused by tough new mortgage qualification rules,” said Cameron Muir, BCREA Chief Economist. “However, less frenetic housing demand has created more balanced market conditions in many regions, leading to fewer multiple offers and more choice for consumers.”

Year-to-date, BC residential sales dollar volume was down 18.9% year-over-year to $37 billion, residential unit sales decreased 20.6% year-over-year to 50,926 units, and the average MLS residential price was up 2.1% year-over-year to $725,639.