Canadian New-Home Prices Fall 0.1% in December

On Friday, Statistics Canada (StatCan) released its New Housing Price Index for December, showing a 0.1% decline. Prices decreased in 7 of the 27 census metropolitan areas (CMAs) surveyed, remained unchanged in 13 CMAs, and increased in the remaining 7.

The largest price drop in December was in Greater Sudbury, with a 0.7% decline, followed by Calgary and Toronto, each down 0.4%. StatCan attributed these decreases to lower negotiated prices and increased incentives offered by builders. Conversely, the combined region of Saint John, Fredericton, and Moncton saw the largest monthly increase, with prices rising 0.6%.

Year-Over-Year Changes

Nationally, the New Housing Price Index edged up 0.1% year-over-year in December.

Calgary recorded the largest annual price increase, up 3.9%, followed by Québec with a 3.8% gain. Meanwhile, the largest annual declines were in Kitchener–Cambridge–Waterloo and Ottawa, both down 1.4%.

These price drops coincided with a rise in available new homes in these two CMAs. The inventory of completed but unsold single-family homes increased in November. According to the latest data from the Canada Mortgage and Housing Corporation, the number of unsold new homes rose year-over-year in December by 166.7% in Kitchener–Cambridge–Waterloo and 54.7% in Ottawa.