Canadian New Housing Price Index Down 0.9% Year-Over-Year in December

Statistics Canada (StatCan) released on Tuesday (1-23-24) its New Housing Price Index (NHPI) for December. The NHPI measures changes over time in the selling prices of new residential houses. The prices are those agreed upon between the contractor and the buyer at the time the sales contract is signed.

According to the NHPI survey, new-home prices were unchanged month-over-month in December, with prices down or unchanged in 21 of 27 Census Metropolitan Areas (CMAs). Year-over-year, Canadian new-home prices declined 0.9% nationally.

In December, the Canada Mortgage and Housing Corporation reported that the national supply of unabsorbed (completed but not sold) single-family homes (single detached, semi-detached, and row) was 37.6% above the level seen in December 2022.

The largest annual price declines in December were in Ottawa, down 4.8%, and Victoria, down 4.2%. These decreases were in contrast to the annual increases reported in Ottawa, up 6.6%, and Victoria, up 3.7%, in December 2022. According to the Canadian Real Estate Association (CREA), sales activity in the resale market was depressed in both cities, with Ottawa down 10.7% and Victoria down 8.7% compared with the previous year.