Mortgage rules starting to hurt housing affordability: BC Real Estate Association

It may not seem like it in Metro Vancouver, but the housing market across British Columbia is cooling down considerably, according to the latest numbers from the B.C. Real Estate Association.

Unit sales in May were down 38 per cent compared to the same month a year ago; the average price of $739,783 was down 1.7 per cent, and sales dollar volume fell 30 per cent.

WATCH: New real estate rules begin in B.C.

Association Chief Economist Cameron Muir says home sales continued to slow in May because of the more stringent mortgage rules.

READ MORE: UBC report says Metro Vancouver housing woes driven by red tape, not speculators

He says the changes are taking their toll on housing demand, not only in B.C., but across the country by reducing household purchasing power and housing affordability.

He says while the decline in consumer demand has increased the inventory of homes for sale, active listings across the province are still relatively low by historical comparison.

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