Zoocasa
Sold Prices
Map
Market Insights
  • Blog Home
  • For Buyers
  • For Sellers
  • Real Estate News
  • Mortgage News in Canada
  • Free Guides (PDF)
  • Real Estate Infographics
Zoocasa
  • Blog Home
  • For Buyers
  • For Sellers
  • Real Estate News
  • Mortgage News in Canada
  • Free Guides (PDF)
  • Real Estate Infographics
Home Guest Posts

How the Mortgage Stress Test Affects the Fraser Valley Market

Which Mortgage by Which Mortgage
December 3, 2018
in Guest Posts, Vancouver Real Estate
Reading Time: 2 mins read
Fraser Valley Market
Share33
Tweet
Share
33 Shares

The British Columbia Real Estate Association (BCREA) recently said that the Office of the Superintendent of Financial Institutions’ B-20 mortgage guidelines have caused a slowdown in housing demand.

These stress tests, introduced in January of this year, have reduced the size of a typical mortgage by 20%. As such, home sellers in the province are being weighed down by this regulation, too.

In May, British Columbia (BC) sales fell year over year. Such difficult conditions were carried over into the next month, but more moderate consumer demand has pushed the supply for home sales higher. This was evidently seen in the Fraser Valley home market, which saw hikes in both total transactions and overall inventory in October.

Annual Pace of Growth Slowing

Compared to September numbers, sales of all property types on its Multiple Listing Service (MLS) rose 11.6% to 1,155 in October. However, when compared to to the 1,779 sales in October of last year, the figure trended lower.

The Fraser Valley Real Estate Board revealed that out of the 1,155 sales, 438 were residential detached homes, 306 were townhouses, and 292 were apartments.

“While slight, this is the first time since May that sales here have been on the upswing. We’re beneath typical activity levels for this time of year but it’s good to see that buyers and sellers are still finding success this season,” said John Barbisan, president of the board.

More Homes Listed for Sale

A total of 2,776 new listings were also recorded. This marked a 5.8% decrease from September 2018, and a 12% increase compared to October 2017.

Overall, the month of October posted 7,746 listings, up by 1.3% and 41.3% month over month and year over year, respectively. The gain was led by the attached segment.

“We’re in a much better spot in terms of overall inventory compared to this time last year, and now closer to a more balanced market. Attached inventory, in particular, has seen notable gains, doubling year over year for townhouses and nearly tripling for apartments,” Barbisan said.

For the Fraser Valley region, the average number of days to sell both an apartment and townhouse in October was 31. Single-family detached homes remained on the market for an average of 39 days before selling.

The Home Price Index Benchmark Price Activity for each home type showed the following: single family detached at $986,700, townhomes at $538,400, and apartments at $432,800.

Nevertheless, BCREA believes that stress testing significantly contributed to the weakening housing demand. “While the BC housing market exhibited balanced condition in October, market conditions do vary between regions and by product type,” the real estate association said.

Previous Post

Does the Empty Homes Tax Belong in Ontario?

Next Post

Fewer Listings Boost November Prices, Squeeze Buyers: TREB

Which Mortgage

Which Mortgage

Which Mortgage provides readers with a resource for mortgage-related information. The website features useful tools like mortgage calculators, rate comparisons, and a regularly updated news section.   Designed with the first-time homebuyer and real estate investor in mind, Which Mortgage is your one-stop shop for all of your mortgage needs. 

Related Posts

Alberta

Breaking Ground: Alberta’s Clear Advantage in New Home Construction

June 30, 2025
brunch table with different entrees
Alberta

You Can’t Eat Your Way Out of the Housing Crisis

June 23, 2025
Dad and daughter walking dog
Canada

Canadian Cities With the Sharpest Home Price Declines in Spring 2025

June 16, 2025

Blog Search

No Result
View All Result

Newsletter Sign-up

Join a community of 130,000+ subscribers. Don't miss important real estate news, market data, and buying and selling tips.

Recent Articles

Vancouver skyline at sunrise

National Home Sales and Prices Signal Steady Recovery as Market Momentum Continues: CREA

July 15, 2025
toronto skyline from ontario place

6 Ways Toronto Real Estate Transformed Over the Past 10 Years

July 14, 2025

10 Brick Homes Across the U.S. Featuring the Most Popular Brick Colors

July 13, 2025
A lake in Alberta, surrounded by towering mountains and lush pine forests.

6 Lakes Close to Edmonton That Locals Love for Escapes and Retreats 

July 12, 2025

Featured Listings

6 Best Cities for Affordable Luxury Homes in Canada Under $1M

July 10, 2025

5 Canadian Cottage Regions That Make the Perfect U.S. Buyer Getaway 

June 15, 2025

From Skyline Views to Private Escapes: 5 Luxe Calgary Homes for Sale

June 10, 2025

What it Means When a Home is Listed for $1

June 7, 2025
first-time home buyer programs and rebates

Social Media

250 The Esplanade Suite 408 Toronto, ON M5A 4J5

Stay Connected

  • Blog Home
  • For Buyers
  • For Sellers
  • Real Estate News
  • Mortgage News in Canada
  • Free Guides (PDF)
  • Real Estate Infographics
No Result
View All Result

Zoocasa © 2007–2022. The trademarks MLS®, Multiple Listing Service® and the associated logos are owned by The Canadian Real Estate Association (CREA) and identify the quality of services provided by real estate professionals who are members of CREA.