The new mortgage rules that came into effect at the start of 2018 are having an impact on the market in British Columbia.

The BCREA says that 6,206 homes were sold through the MLS in February, down 5.7% year-over-year, while prices were up 8.8% to an average $748,327.

“More stringent mortgage qualification rules for conventional borrowers are dampening housing demand in the province,” said Cameron Muir, BCREA Chief Economist. “Since the new rules came into effect, BC home sales have fallen more than 26%, on a seasonally adjusted basis.”

Year-to-date, BC residential sales dollar volume was up 15.9% to $8.47 billion, compared with the same period in 2017. Residential unit sales increased 4.1% to 11,516 units, while the average MLS residential price was up 11.3% to $735,755.

The association says that previous tightening of mortgage rules has led to a softer market for around 4 to 7 months with the third month typically showing the largest impact.