Canadian new home prices unchanged in April

Thursday, 21 May 2020 22:51:18 (GMT+3)   |   San Diego
       

According to Statistics Canada, new home prices were unchanged at the national level in April following two consecutive monthly increases.

In April, 16 of the 27 census metropolitan areas (CMAs) included in the survey saw little or no change in new housing prices. However, the number of new homes sold by the builders surveyed in April declined by almost two-thirds (64.1 percent) compared with the same month last year. A similar trend was observed on the resale market at the national level, with sales down 57.6 percent in April year over year, according to the Canadian Real Estate Association.

The slowdown in new sales activity occurred as physical distancing policies were put in place to curb the spread of COVID-19. Although real estate services continued to be offered, there were new challenges in viewing and selling homes. Builders, as well as buyers, adjusted to the new normal of selling and buying homes via virtual tours, digital signing and visits to sales centers by appointment only.

New house prices rose in 13 of the 27 CMAs surveyed in April, were flat in 11 and declined in 3.

The largest increases were in Guelph (+0.6 percent), Kitchener–Cambridge–Waterloo (+0.5 percent) and Ottawa (+0.4 percent). Builders tied the gains to market conditions. Additionally, the inventory of available homes has been low in these CMAs.

The growth of new house prices in Canada's historically expensive housing markets, Vancouver and Toronto, remained unchanged in April after two consecutive months of price gains.

New house prices declined the most in Edmonton (-0.3 percent), Calgary and Regina (both down 0.2 percent) in April, with the decreases primarily attributable to weak market conditions.

At the national level, new house prices edged up 0.9 percent year over year in April. For the tenth month in a row, the largest year-over-year price increases occurred in Ottawa (+10.5 percent) and Montréal (+8.4 percent).

In April, for the third consecutive month, new house prices fell the most year over year in Regina (-3.6 percent) and Calgary (-1.6 percent). Annual price movements have been negative since February 2018 in Regina and since July 2018 in Calgary.

 


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