According to Statistics Canada, new house prices in Canada rose 0.2 percent nationally in December, the largest monthly increase for the month of December since 2009.
Prices for new houses increased the most in Ottawa (+0.6 percent) in December, with builders reporting market conditions and construction costs as the primary reasons for the gain. The high demand for housing, as well as low inventory levels, continued to push prices up in the region.
New house prices were down in Greater Sudbury (-0.3 percent) and Gatineau (-0.2 percent) in December. Builders reported lower negotiated selling prices as the reason for the decline in both census metropolitan areas (CMAs).
New house prices at the national level rose 0.1 percent year over year in December, the first year-over-year increase since April 2019.
For the sixth consecutive month, the largest year-over-year price increases occurred in Ottawa (+7.2 percent) and Montréal (+6.6 percent). Ottawa has been the CMA with the largest price increases since May 2018. Additionally, this was the largest year-over-year increase in Ottawa since October 2004, and the largest in Montréal since November of the same year.
Year over year, prices for new houses fell the most in Regina (-2.4 percent) and Vancouver (-2.3 percent) in December. Lower negotiated selling prices contributed to the annual decreases in both CMAs.