According to Statistics Canada, Canadian new housing prices fell in January for the first time since February 2018.
The national index declined 0.1 percent in January, following five consecutive months of unchanged prices. Mortgage rate increases in 2018, along with tighter mortgage regulations, likely contributed to the flatness observed across Canada.
Buyers in Saskatoon (-0.3 percent) recorded the largest decrease in January, which was the result of lower negotiated selling prices for new homes.
Four of the largest new housing markets in the country reported declines in January, ranging from decreases of 0.1 percent in Vancouver and Edmonton to declines of 0.2 percent in Toronto and Calgary. Builders in all four census metropolitan areas (CMAs) tied the decreases to lower negotiated selling prices and unfavorable market conditions.
Eight CMAs reported gains in January. Halifax and Trois-Rivières posted the largest increases, both up 0.3 percent as a result of higher construction costs.
In a year-on-year analysis, new housing prices at the national level edged down 0.1 percent year over year in January, the first 12-month decline in more than nine years.
Regina recorded the largest decrease (-3.0 percent) among the 11 CMAs that reported 12-month declines. New home prices in Regina have been steadily decreasing for the past year.