According to Statistics Canada, in June, new house prices in Southern Ontario paused from their recent upward climb, curbing the national increase at 0.2 percent. This was down from a 0.8 percent increase in April and a 0.7 percent gain in May.
Toronto recorded no change in new home prices in June. The same dynamic was observed in a number of neighboring census metropolitan areas (CMAs), with only St. Catharines-Niagara (+0.1 percent) and Kitchener-Cambridge-Waterloo (+0.1 percent) reporting minimal price increases.
These results follow the introduction of the Fair Housing Plan by the Ontario government in April. The plan includes the 15 percent Non-Resident Speculation Tax, as well as other measures aimed at cooling the housing market in Ontario.
Vancouver (+1.5 percent) and Ottawa-Gatineau, Ontario part (+0.9 percent) were the top contributors to the national gain. This was the largest increase in Ottawa-Gatineau, Ontario part since April 2011. Builders in both metropolitan areas cited improving market conditions as the main reason for the increase. Overall, prices were up in 8 CMAs, down in 5 and unchanged in 14.
New house prices in Canada rose 3.9 percent over the 12-month period ending in June, led by Toronto (+8.5 percent). Other notable year-over-year price increases were observed in Kitchener–Cambridge–Waterloo (+6.5 percent), London (+6.4 percent), Vancouver (+6.2 percent) and St. Catharines–Niagara (+6.0 percent). Declines were recorded for five metropolitan areas, with St. John's (-0.9 percent) posting the largest decrease.