A new report from Central 1 Credit Union predicts housing sales in British Columbia will continue to decline for another two years.
The report says 2019 will see the fewest sales since 2013.
WATCH: New report predicts B.C. housing sales’ slowdown
Central 1 deputy chief economist Bryan Yu says prospective buyers are on the “sidelines,” with some not qualifying for financing under new mortgage-lending restrictions and others just waiting for a more stable market.
“So, some of them are being left back in the rental market more than they were previously. And we are likely going to be seeing more pressure in the rental market again as people are constrained by that ability to get financing.”
As for sellers, Yu says with the B.C. economy otherwise strong, many are reluctant to lower their asking price, yet.
Combine that, Yu says, with the Speculation Tax and the Foreign Buyers Tax, and it has resulted in “recessionary” conditions in the housing market.
Two weeks ago, the B.C. Real Estate Association reported residential home sales in the province in April were down 18.9 per cent from the same month last year.
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And the average price fell 6.2 per cent, to $685,304.
BCREA chief economist Cameron Muir said home sales were essentially unchanged from March, and he says prospective homebuyers continue to deal with the decline in their purchasing power caused by federal government changes to mortgage rules.