Canadian National New Home Price Index Declines Month-Over-Month in February
New Housing Price Index, February 2023
Statistics Canada (StatCan) reported today (3-22-23) that the Canadian National New House Price Index declined 0.2% month-over-month in February. This follows a similar decrease in January. The index has retreated in five of the past six months. In February, prices were lower or unchanged in 25 of the 27 census metropolitan areas and up in 2.
StatCan is reporting that in February new home prices fell the most in St. Catharines-Niagara, Ontario, down 1.3%, followed by Victoria, BC, and Gatineau, Quebec, both down 0.9%. Builders noted deteriorating market conditions as the reasons for the declines.
High mortgage rates continued to slow housing demand, with the Canada Mortgage and Housing Corporation (CMHC) reporting 44.1% more unsold, newly constructed single-family homes in February compared to February 2022. Similar conditions were reported in the resale housing market, with the number of national existing homes sales falling 40% year-over-year in February, as reported by the Canadian Real Estate Association (CREA).
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