Northern BC home sales are down a whopping 23% since the new mortgage rules took effect in the new year.
According to the BC Real Estate Association (BCREA), units sales across the province also took a turn for the worse posting a decline of 26%.
@BCREA reports new mortgage qualification rules temper housing demand – https://t.co/sQCDayN75S pic.twitter.com/FVRUNdYPQF
— BC Real Estate Assoc (@bcrea) March 14, 2018
In the short term, this trend to will continue.
“These kinds of tightening measures typically last between four and seven months and the largest impact occurs around month three, so we are two months in with the new policy so we do expect over the coming months to see sales coming off the way we would expect them to be,” says Cameron Muir, BCREA Chief Economist.
“Part of the reason sales are down is because we had a better than usual December but also some of it was due to the fewer sales from the stress test.”
Residential unit sales, which include places like Prince George, Vanderhoof and the Bulkley Valley and Lakes District are down 11% compared to the same time frame last year.
Despite the decline in sales, the average home price for the region is up to $287,000, compared with the $269,000 mark just 12 months earlier.
In Prince George, the average price is a bit higher at around $320,000.