Falling home sales in B.C. are set to drag national sales down to lows not seen in nearly a decade, according to projections released by the Canadian Real Estate Association (CREA) on Monday.
The association’s latest quarterly forecast projects B.C.’s market to take another 5.2-per-cent hit in 2019, bringing home sales in the province down nearly 30 per cent since 2017, when sales exceeded 100,000 units.
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Rising interest rates and strict mortgage stress-test rules are being blamed for the nationwide slump, which is expected to fall 0.5 per cent in 2019 to a nine-year low of 456,200 units sold, after dropping just over 11 per cent in 2018 to 458,200 units, which was already a five-year low.
In the west, the CREA is holding B.C.’s rising foreign buyers tax and oil price declines in Alberta responsible for falling sales there, which are expected to continue well into the new year.