Yesterday Statistics Canada released the latest New Housing Price Index. Most areas of Western Canada showed a decline in prices over past 12 months. Edmonton real estate showed the largest decrease in New Home prices at –11.4 %.
Here is the Statscan report.
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August 2009
Contractors' selling prices increased 0.1% in August following a 0.3% advance in July.
Between July and August, prices increased the most in St. John's (+1.1%) followed by Québec (+0.9%) and Regina (+0.8%).
In St. John's, some builders adjusted prices upward to be more in line with the value of land within the city.
In Québec, prices continued to increase as builders reported higher material and labour costs. Builders moving to new phases of development also raised their prices as the scarcity of available lots has been pushing up land value in this region.
The largest monthly decrease in new housing prices was recorded in Hamilton (-0.5%). Some builders lowered their prices to encourage sales while others offered bonus upgrade packages.
Monthly declines were also observed in Windsor (-0.4%) and Edmonton (-0.3%).
12-month change: Continued declines in the New Housing Price Index in Western Canada
Year over year, the New Housing Price Index was down 3.1%. The largest declines remained in Western Canada, where prices decreased from highs registered in late 2007 and the beginning of 2008.
In the Prairie region, 12-month declines were recorded in Edmonton (-11.4%), Saskatoon (-7.6%) and Calgary (-6.3%).
On the West Coast, Victoria (-10.0%) and Vancouver (-7.8%) also posted year-over-year declines.
Over the past few months, some builders in Alberta and British Columbia have offered lower prices, bonuses and incentives to motivate sales in the face of weaker market conditions.
Among surveyed cities, the largest year-over-year increase was registered in St. John's (+7.5%). This was the 10th consecutive month that this city has led the way in year-over-year advances.
On a year-over-year basis, prices in Québec (+6.3%) and in Saint John, Fredericton and Moncton (+2.2%) increased, albeit at a slower pace than in previous months.
Compared with August 2008, contractors' selling prices were 1.8% higher in Regina. Charlottetown (+1.7%) and Winnipeg (+1.6%) also posted increases.
You can find the complete article at the Statistics Canada website at:http://www.statcan.gc.ca/daily-quotidien/091013/dq091013a-eng.htm
Ben Officer, CD REALTOR®
RE/MAX Real Estate (Edmonton)
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