According to Statistics Canada, new house prices in Canada were unchanged nationally for a second consecutive month, despite increases in some pockets across the country.
In September, new home buyers in 20 of the 27 census metropolitan areas (CMAs) surveyed saw flat or decreasing prices. Increased mortgage rates, along with tighter mortgage regulations, have coincided with slowing demand for new homes across Canada.
New home prices fell the most in St. John's and Hamilton (both down 0.4 percent), and Halifax and Saskatoon (both down 0.3 percent). Builders in all four CMAs reported unfavorable market conditions as the primary reason for the price decline.
The largest price increases in September were in London (+0.5 percent), and Vancouver and Sherbrooke (both up 0.4 percent). Builders in London reported that increased construction costs were pushing up prices. In Vancouver, builders returned to list prices after some discounting in previous months. In Sherbrooke, builders reported higher prices for new phases of development.
New house prices edged up 0.2 percent year over year in September, the smallest annual increase since January 2010.