According to Statistics Canada, the national housing price index edged down 0.1 percent month over month in April. The index has declined six times since August 2022 (at its historical peak). Prices were down or unchanged in 20 of the 27 census metropolitan areas (CMAs) surveyed, and up in 7 CMAs.
Prices decreased the most in London (-1.0 percent) and Guelph (-0.8 percent) in April, with builders noting weak market conditions as the reason for the decline. Canada's most expensive housing markets (Vancouver and Toronto) saw no change in new house prices in April.
Prices increased the most in Québec (+2.0 percent) and Winnipeg (+1.1 percent) in April. Builders in these CMAs linked the gain to construction costs. Residential construction costs have continued to rise due to skilled labor shortages and increased costs of materials across the construction industry.
Nationally, new home prices decreased 0.2 percent on a year-over-year basis in April, significantly lower than the annual change recorded in April 2022 (+9.4 percent). With the rapid rise in borrowing costs since April 2022, new home prices declined and the housing market slowed, with the Canada Mortgage and Housing Corporation reporting a 63.2 percent year-over-year increase in unabsorbed inventory (houses built, but not sold) in April 2023.
This decrease in house prices in April marks the first year-over-year decline of the national index since November 2019 and is largely attributed to annual declines in Canada's two largest markets, namely Toronto (-0.3 percent) and Vancouver (-0.8 percent). In addition, a total of 16 CMAs recorded either no change or a decrease in prices year over year in April 2023, the most since May 1996.
Among the CMAs surveyed, Victoria (-2.7 percent) recorded the largest year-over-year decline in new home prices in April 2023, followed by Kitchener–Cambridge–Waterloo (-1.5 percent) and London (-1.0 percent).
Québec (+3.9 percent) recorded the largest year-over-year increase in April, followed by Halifax (+1.8 percent) and Montréal (+1.4 percent).