According to Statistics Canada, the national index increased 0.1 percent month over month in June, driven by price growth in two of Canada's larger housing markets, Vancouver and Calgary. This national uptick follows the 0.1 percent increase recorded in the previous month. Prices were up in 4 of the 27 census metropolitan areas (CMAs) surveyed in June 2023, down in 9, and unchanged in the remaining 14 CMAs.
New home prices increased month over month in Kitchener–Cambridge–Waterloo (+0.8 percent), Calgary (+0.6 percent), Greater Sudbury (+0.6 percent) and Vancouver (+0.5 percent) in June, with builders noting improved market conditions and construction costs as the reasons for the price growth. This was the fourth consecutive monthly increase in Kitchener–Cambridge–Waterloo, while Greater Sudbury reported its first increase since June 2022. This was also the second consecutive month that Vancouver recorded a monthly increase and its largest since July 2022.
In June 2023, new home prices declined the most month over month in Saskatoon (-1.4 percent), Edmonton (-1.0 percent) and Montréal (-0.4 percent). Builders in Saskatoon noted reduced construction costs as the reason for the price declines, while builders in Edmonton and Montréal noted weak market conditions.
Nationally, new home prices were down 0.7 percent year over year in June, compared with an increase of 7.9 percent recorded in June of the previous year.
Among the CMAs surveyed, Edmonton (-3.3 percent) recorded the largest year-over-year decline in new home prices in June, followed by Victoria (-2.9 percent) and St. Catharines–Niagara (-2.4 percent). Edmonton reported its largest year-over-year decline since February 2010.
In total, 20 of the 27 CMAs surveyed recorded a decrease in new home prices year over year in June 2023, the most ever recorded. In June, the Bank of Canada increased its policy interest rate for the first time since January, raising it an additional 25 basis points, bringing it to 4.75 percent compared with 1.50 percent in June of last year. This rate increase put additional pressure on the housing market.
In June 2023, the largest year-over-year increases were reported in the CMAs of Québec (+3.7 percent), Calgary (+1.0 percent) and St. John's (+0.6 percent).