B.C. Finance Minister Carole James presents first quarter financial results, Sept. 10, 2019. (Tom Fletcher/Black Press)

Slow home sales cool B.C. government revenues this year

Finance Minister Carole James releases first 2019 results

A 16 per cent reduction in home sales and a slump in the forest industry have reduced the B.C. government’s estimated surplus by $95 million, Finance Minister Carole James says.

Home sales fell by 16 per cent from April through July, compared to the first quarter of the last fiscal year, James said as she released the B.C. government’s first quarter results for the fiscal year.

Home sales fell by 16 per cent from April through July, compared to the first quarter of the last fiscal year, James said as she released the B.C. government’s first quarter results for the fiscal year.

James said the government will continue to monitor the effect of the speculation and vacancy tax and other measures, watching for housing prices come down so more people can afford to buy a home.

“I don’t think there’s a British Columbian, particularly young people who are trying to get into the market, who would say we have reached the affordability level,” James said.

Comparing the first quarter results to the budget presented by James in February, taxation revenue is $277 million below budget and spending is above. The finance ministry shifted $300 million from contingency funds to yield a surplus forecast of $179 million.

RELATED: 12,000 B.C. residents paying speculation tax

RELATED: B.C. housing prices predicted to fall in 2019

The biggest adjustment in the first quarter is property transfer tax, down $385 million from the budget. That was partially offset by income tax revenue, which came in $215 million more than budgeted.

Despite struggles in the forest industry and continued cooling of the housing market, the province’s private sector economic forecast council expects its annual growth for 2020 to lead the country.

Economic growth is forecast at 2.4 per cent for B.C., compared to 2.2 per cent for Alberta and 1.8 per cent in Ontario, according to council member Bank of Montreal, CIBC, National Bank, Royal Bank, ScotiaBank and TD.


@tomfletcherbc
tfletcher@blackpress.ca

Like us on Facebook and follow us on Twitter.

BC legislature

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Port McNeill council tackles the issue of AirBnBs

Council wants a public hearing to identify options for short-term rentals in Port McNeill.

Port McNeill council roundup: Feb. 11 meeting

Various stories from Port McNeill council’s Feb. 11 meeting.

Forestry workers vote for new agreement, ending 8-month strike on Vancouver Island

Wage increases, higher premiums and contract language part of new agreement

REVIEW: Poetry helps Conshinz heal from brain trauma

The Book of 1000 Poems, Volumes 1-4, by Conshinz, a.k.a. Port Alice… Continue reading

Pipeline dispute: Tories put no-confidence motion on House of Commons agenda

Conservatives say they have no confidence in the Trudeau government to end the rail blockades

Galchenyuk nets shootout winner as Wild edge Canucks 4-3

Vancouver tied with Calgary for second spot in NHL’s Pacific Division

Original Victoria Clipper vessel sails one last time

Vessel sold to buyers in Gabon, Central Africa

B.C.’s soda drink tax will help kids lose weight, improve health, says doctor

Dr. Tom Warshawski says studies show sugary drinks contribute to obesity

A&W employees in Ladysmith get all-inclusive vacation for 10 years of service

Kelly Frenchy, Katherine Aleck, and Muriel Jack are headed on all-expenses-paid vacations

B.C. mom’s complaint about ‘R word’ in children’s ministry email sparks review

In 2020, the ‘R’ word shouldn’t be used, Sue Robins says

Two new hybrid BC Ferries ships christened with new names in Victoria ceremony

Island Aurora and Island Discovery will service Gulf Island and North Island routes

B.C., federal ministers plead for meeting Wet’suwet’en dissidents

Scott Fraser, Carolyn Bennett says they can be in Smithers Thursday

Province shows no interest in proposed highway between Alberta and B.C.

Province says it will instead focus on expanding the Kicking Horse Canyon to four lanes

Most Read