According to Statistics Canada, new house prices in March were unchanged, reflecting mixed results across the country. Rising prices in 13 census metropolitan areas (CMAs) were offset by flat or declining prices in the other 14 surveyed CMAs.
Favorable market conditions had Ottawa builders reporting a 1.3 percent increase in March, the largest price gain among surveyed CMAs. This was the sixth consecutive rise and the largest since April 2011. According to the Canada Mortgage and Housing Corporation, new single-family home completions in Ottawa grew 4.1 percent over the 12 months ending in March 2018 compared with the same period for 2017. Despite new construction, the inventory of completed and unsold single-family homes was lower in March 2018 compared with the same month a year earlier. Single-family homes include row, single, and semi-detached houses.
Higher demand and prices for new housing in the Ottawa market may, in part, reflect growth in full-time employment and population, as well as tightness in the resale market. According to the Canadian Real Estate Association, new listings were down 7.4 percent in March 2018 compared with the same period in 2017.
In a year-on-year comparison, new house prices rose 2.4 percent in March. Vancouver (+8.4 percent), London (+7.7 percent) and Ottawa (+5.8 percent) had the largest 12-month gains. Among the five CMAs reporting declines, Saskatoon (-2.0 percent) recorded the largest 12-month decrease.