According to Statistics Canada, the national housing price index edged down by 0.2 percent month over month in September. Prices were unchanged in 15 of the 27 census metropolitan areas (CMAs) surveyed, down in 9 CMAs and up in 3.
New home prices decreased the most month over month in September in Montréal (-0.7 percent), Edmonton (-0.7 percent) and Kelowna (-0.6 percent), with builders noting weak market conditions and reduced construction costs as the reasons for the declines. These were the first reported monthly declines in these three CMAs since June.
Of the three CMAs that had price increases in September, Gatineau (+0.5 percent) recorded the largest rise, followed by Calgary (+0.1 percent) and Hamilton (+0.1 percent).
Nationally, new home prices declined 1.0 percent year over year in September. Although the Bank of Canada kept the policy interest rate unchanged in September, the rate remained high compared with September 2022. High interest rates put downward pressure on the new housing market, with the Canada Mortgage and Housing Corporation reporting 46.4 percent more single family homes (single detached, semi-detached, and row) completed but not sold (unabsorbed inventory) nationally in September 2023, compared with September 2022.
Ottawa recorded the largest year-over-year decline (-4.3 percent) in new home prices in September 2023, followed by Edmonton (-3.8 percent) and Victoria (-3.7 percent).
The largest year-over-year increases in September were reported in the Québec (+3.5 percent), Calgary (+2.6 percent), St. John's (+1.2 percent) and Sherbrooke (+1.2 percent) CMAs.