New Home Prices Edged Up 0.1% in August

Housing Prices

October 13, 2017

Prices for new homes were unchanged in 15 of the 27 census metropolitan areas (CMAs) surveyed, including what have been Canada’s two hottest housing markets — Toronto and Vancouver. For Toronto, this was the third consecutive month of flatness. In Vancouver, this was the first month of no price change, following five consecutive monthly increases.

Nationally, new home prices edged up 0.1% in August, primarily reflecting increases in the CMAs of London (+1.0%), Kelowna (+0.9%) and Ottawa–Gatineau, Ontario part (+0.4%). Builders in all three CMAs tied the rise to improved market conditions. In Ottawa–Gatineau, new phases of development also contributed to higher prices.

Prices were down in St. John’s (-0.5%), Sherbrooke (-0.2%) and Halifax (-0.1%).

New Housing Price Index, 12-month change

New house prices in Canada rose 3.8% year-over-year in August. London saw a 12-month price gain of 8.1%, the largest for this metropolitan area since February 1990. Vancouver’s (+7.8%) year-over-year increase matched the previous month. In Toronto, the 12-month change (+6.7%) was down from this year’s peak in April (+9.9%).

Declines were recorded in three CMAs, with St. John’s (-0.9%) posting the largest decrease.

Source: Statistics Canada, www.statcan.gc.ca/daily-quotidien/171012/dq171012b-eng.htm

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