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

Businesses mixed on downtown temporary washroom

Ladysmith Health Food Stores launches petition against the temporary washroom

Three active COVID-19 cases on Vancouver Island

Since July 24, Central island has had five new cases, North one, South none

Cheri Mactier celebrates 20 years in Ladysmith real estate

After 20 years in town, Mactier’s daughter, Brianne Mactier is joining the family business

Exhibit showcases one side of artist’s wide-ranging personality

Skagfeld takes something from all of her life experiences

VIDEO: Internet famous Yukon-based bhangra dancer explores Vancouver Island

Gurdeep Pandher spreads joy through dance, forms cross-cultural connections amid pandemic

B.C. records new COVID-19 death, 85 more cases; Horgan calls on celebrity help

This brings the total number of active confirmed cases to 531 across the province

Horvat scores 2 as Vancouver Canucks beat Blues 5-2 in NHL playoff opener

Game 2 in best-of-seven series goes Friday night

Old-growth forest defenders in Campbell River call for B.C. forest minister’s resignation

Protestors outside North Island MLA’s office ask government to stop old-growth logging

Teachers to get 2 extra days to prepare for students’ return, now set for Sept. 10

Students will first start with orientation and learn rules of COVID-19 classroom policies

High-volume littering at Cape Scott draws ire from hiking groups

Popular Vancouver Island hiking spot not closing, but frustration about crowding grows

SFU to drop ‘Clan’ varsity team name

The ‘Clan’ name is shortened from ‘Clansmen,’ and was introduced roughly 55 years ago

New Tory leader must build a strong team in Commons and for the campaign: Scheer

Scheer marked his final day in the House of Commons today as leader of the Opposition

B.C. to hire 500 more COVID-19 contact tracers ahead of fall

Contract tracers add an ‘extra layer’ in the fight against the novel coronavirus

More than $800,000 in suspected cocaine seized from ship near Victoria

RCMP Dive Team suspects more narcotics had been stored below ship’s waterline

Most Read