According to Statistics Canada, new house prices were unchanged in January, following a 0.2 percent rise in December.
In January, prices for new houses increased the most in Ottawa (+1.4 percent). Builders associated the gain with favorable market conditions and higher construction costs. The persistent housing supply shortage continued to drive up prices in the region. The Ottawa Real Estate Board reported that the number of new listings was 34.5 percent lower than the 10-year average for the month of January.
New house prices were up in Greater Sudbury (+1.1 percent) and Kelowna (+0.6 percent) because of higher construction costs.
In contrast, unfavorable market conditions drove down prices in Regina (-1.2 percent) and Saskatoon (-0.5 percent). New home buyers in Toronto (-0.4 percent) and Vancouver (-0.2 percent) saw prices fall in January.
In January, new house prices at the national level rose 0.2 percent, year over year. For the seventh consecutive month, the largest year-over-year price increases occurred in Ottawa (+8.4 percent) and Montréal (+6.8 percent).
New home buyers continued to see prices fall in Regina (-3.7 percent). New house prices have been declining year over year in this census metropolitan area since February 2018.