Housing demand slowing in Northern BC due to new mortgage rules
According to the BC Real Estate Association (BCREA), housing sales continued to nosedive in May falling 29% when compared to the same time last year
However, the new mortgage rules aren’t quite having the same effect in the north.
“Sales are down about six percent when compared to the same time last year within the BC Northern Real Estate Board area, on the pricing side we have seen pressure on prices and we’re seeing about 5.5% year-over-year growth in the average price,” says Cameron Muir, BCREA Chief Economist.
He adds all the declining figures point to an economy that’s slowing down.
“When we look at the BC economy, growth is slowing and overall, we’ve had four years of well-above trend growth, the labour force growth is starting to slow with many sectors reaching at or full employment.”
“The results are we’re going to see less employment growth, less growth in retail sales and while we saw almost 10% growth in retail sales, we will probably see about half of that this year.”
Active listings last month fell 15% when compared to 12 months earlier.
The average home price in the region is around $300,000, while Prince George is a bit higher at $320,000.
BC’s residential price during May was $739,783, down less than 2% from the same period in 2017.