February 25, 2019 3:07 pm

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. Vancouver's once red-hot housing market continued to cool last month as the number of home sales fell to the lowest level seen in January in 10 years. THE CANADIAN PRESS Jonathan Hayward

THE CANADIAN PRESS Jonathan Hayward
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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.

READ MORE: Slowdown in housing market continued in January: B.C. Real Estate Association

“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.

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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