Canadian New-Home Price Index Inches Lower in January

On Wednesday, Statistics Canada (StatCan) reported that the New-Home Price Index (NHPI) declined marginally in January. According to the report, the NHPI inched 0.1% lower month-over-month. Prices were down or unchanged in 21 of the 27 census metropolitan areas (CMAs) surveyed.

The largest month-over-month declines in January were recorded in Ottawa, down 0.4%, with some builders offering promotions to generate sales. StatCan reports that the January decline was the 13th consecutive monthly decline for Ottawa. Other noteworthy decreases were observed in Vancouver, down 0.3%; Montreal, down 0.3%; and Calgary, down 0.2%.

The greatest month-over-month price increases in new-home prices were in Edmonton, up 0.8%, and Trois-Rivieres, up 0.4%. Builders in these two CMAs pointed to increased construction costs and improved market conditions as reasons for the price increases, StatCan said.

Year-over-year, new-home prices were down 0.7% nationwide. This marks the 10th consecutive annual decrease and the longest series of declines since 2009.

Ottawa, down 5.0%, reported the largest year-over-year decline in January, followed by Victoria, down 3.2%. The largest annual increases were reported in Québec, up 3.3%, and Calgary, up 2.5%.