Median house prices in British Columbia 2018-2020
The average house price in British Columbia in 2020 was forecasted to be 728,500 Canadian dollars. The house prices rose in the province until 2018, but are set to fall in 2019, before rising again in 2020. This trend will also affect the average house prices in Canada as whole.
Why are house prices falling?
The downward trend in house prices is caused by the new mortgage stress test, the foreign buyers tax and other provincial policies introduced in 2018 and 2019, according to BC real estate experts. The mortgage stress test means that mortgage loan applicants must prove that they can afford mortgage payments at a higher interest rate than their actual rate before they get mortgage approval. These changes were deemed necessary to stabilize the housing market in the province.
Fall in housing demand
Housing starts rose between 2013 and 2017, but began to fall from 2018. This trend mirrors the fall in house prices and implies that demand has reduced since the aforementioned policies and changes were introduced.
Why are house prices falling?
The downward trend in house prices is caused by the new mortgage stress test, the foreign buyers tax and other provincial policies introduced in 2018 and 2019, according to BC real estate experts. The mortgage stress test means that mortgage loan applicants must prove that they can afford mortgage payments at a higher interest rate than their actual rate before they get mortgage approval. These changes were deemed necessary to stabilize the housing market in the province.
Fall in housing demand
Housing starts rose between 2013 and 2017, but began to fall from 2018. This trend mirrors the fall in house prices and implies that demand has reduced since the aforementioned policies and changes were introduced.
