Canadian new home prices up 0.4 percent in September

Thursday, 21 October 2021 22:41:02 (GMT+3)   |   San Diego

According to Statistics Canada, nationally, prices for new homes increased 0.4 percent in September, with prices up in 13 of the 27 census metropolitan areas (CMAs) surveyed. Five CMAs saw a decline in new home prices, the largest number of CMAs with a price decrease since March 2020. Prices were unchanged in the remaining CMAs.

Windsor (+1.9 percent) reported the largest monthly change in new home prices in September. New home prices also increased in Oshawa (+1.8 percent) and Victoria (+1.7 percent). All three of these CMAs have been experiencing sustained low active listings—sales activity was lower in August 2021 than in August 2020. However, the strong demand for new homes continued to push prices up.

New home prices continued to rise in Montréal (+1.7 percent) in September. The Quebec Professional Association of Real Estate Brokers reported that prices continued to increase despite a slowdown in sales activity, due to a lack of active listings and continued demand in the resale market. As a result, a rise in pre-sale activity in the new construction market was observed, diverting some of the demand from the resale market while putting upward pressure on new home prices.

Decreases in new home prices were led by Saskatoon (-0.9 percent). The Saskatchewan Realtors Association reported a recent shift to more balanced conditions between supply and demand in the province, easing some of the strain on prices. The MLS Home Price Index benchmark price for resale homes in Saskatoon decreased 1.0 percent from August, down to $326,100.

New home prices were up in all 27 markets surveyed on a year-over-year basis, with the largest gains in Kitchener–Cambridge–Waterloo (+26.5 percent), Ottawa (+25.3 percent) and Windsor (+22.9 percent).

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