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Shock of federal mortgage stress test now behind BC housing market: BCREA

A real estate sign is pictured in Vancouver, B.C., Tuesday, June 12, 2018. THE CANADIAN PRESS Jonathan Hayward

The BC Real Estate Association is out with its latest housing forecast, and it’s predicting a sales increase of two per cent this year and an increase of 6.9 per cent next year.

“The negative shock to affordability and purchasing power created by the federal stress test on mortgage borrowers is expected to continue constraining housing demand in the province this year,” says Cameron Muir, chief economist for the association.

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However, he says favourable demographics and the continuing strong performance of the BC economy are expected to support housing demand over the next two years.

As for prices this year, he’s predicting market conditions will provide little upward pressure, with only a 0.5 per cent increase bringing the average price for a home across the province to $716,100.

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