Advertisement

Housing sales will decline for 2 years in B.C.: Central 1 Credit Union

Click to play video: 'Are tougher provincial rules behind real estate market drop?' Are tougher provincial rules behind real estate market drop?
WATCH: Keith Baldrey looks at whether government policies are partially to blame for B.C.'s real estate market drop and if this was the intended effect of the new rules. – May 28, 2019

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 

Click to play video: 'New report predicts B.C. housing sales’ slowdown will last another two years' New report predicts B.C. housing sales’ slowdown will last another two years
New report predicts B.C. housing sales’ slowdown will last another two years – May 28, 2019

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.

Story continues below advertisement

“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.”

READ MORE: Province announces new rental homes for middle-income families in Kelowna

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.

WATCH: (Aired May 3, 2019) Buyer’s market as some Metro Vancouver condo prices coming down

Click to play video: 'Buyer’s market as some Metro Vancouver condo prices coming down' Buyer’s market as some Metro Vancouver condo prices coming down
Buyer’s market as some Metro Vancouver condo prices coming down – May 3, 2019

READ MORE: Proposed Burnaby bylaw protecting renters from demovictions passes 1st reading

Story continues below advertisement

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.

Sponsored content