Canadian new house prices up 0.2 percent in September

Thursday, 14 November 2019 21:27:53 (GMT+3)   |   San Diego

According to Statistics Canada, new house prices were up 0.2 percent nationally in September—the largest increase in two years.

New house prices increased the most in Kitchener—Cambridge—Waterloo in September, up 1.5 percent for a second consecutive month. Favorable market conditions and more affordable prices relative to Toronto continued to influence demand in the region. Canada Mortgage and Housing Corporation reported that housing starts for single-detached homes in Kitchener—Cambridge—Waterloo increased 18.6 percent from August to September.

The price of new homes rose by 1.0 percent in both Ottawa and Trois-Rivières in September. Builders cited construction costs as the primary reason for the increase in Trois-Rivières and favorable market conditions for the rise in Ottawa.

New house prices at the national level were down 0.1 percent on a year-over-year basis in September—the fourth consecutive decline.

Year-over-year prices declined in Calgary and Vancouver (both down 2.2 percent). On an annual basis, new house prices have fallen since July 2018 in Calgary and since December 2018 in Vancouver. Canada Mortgage and Housing Corporation reported that year to date (January to September) housing starts for single-detached homes were down in Calgary (-15.8 percent) and Vancouver (-23.7 percent) compared with the same period a year earlier.

Ottawa (+6.3 percent) and Montréal (+4.9 percent) posted the largest year-over-year increases in September, because of favorable market conditions and higher construction costs, which are largely a result of a skilled labor shortage. This was the largest year-over-year increase in Ottawa since February 2005 and the largest in Montréal since August 2008.


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