Edmonton records steepest decline in new house prices

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Edmonton records steepest decline in new house prices
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edmontonjournal.comMarch 11, 2009 11:04 AMBe the first to post a comment
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  A sold sign at ahouse in Edmonton.Photograph by: John Lucas, Edmonton JournalEDMONTON — Edmonton recorded the steepest declines in monthly and annual new house prices in the country, Statistics Canada reported Wednesday.
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Prices dropped 2.8 per cent between December and January. Calgary posted the second biggest monthly decline at 2.1 per cent. Nationally, prices fell 0.6 per cent.

Edmonton’s 10.4 per cent annual price decline was followed by Calgary’s 6.5 per cent slide. Across Canada, new home prices were down 0.8 per cent.
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7 e0 ~2 j2 j4 z6 f. j0 PTD Securities said the year-over-year decline was the largest since 1991 and noted that eight of the last 12 months have recorded a drop in the price of new homes.
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: F: `2 Y3 @4 b8 gIt said the figures were an indication that the housing market has continued its cooling period during the ongoing economic crisis.

1 P- I3 w# C8 S+ |And the Conference Board of Canada warned Wednesday the construction industry is expected to see profits fall nearly 20 per cent this year as the economic downturn dampens demand for new homes.
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Residential construction earnings will drop to $3.2 billion in 2009, the biggest decline since 1995, the board said in a report. It also forecasts profits to fall below $3 billion in 2010.
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“Years of frenzied construction activity had left the market overdue for a correction,” said Conference Board economist Valerie Poulin.
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+ L. Y5 X, \' f+ ]  ]- N9 f4 t“With demand for new homes waning across Canada due to poor economic conditions, the market drop-off appears to be more severe than expected.
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7 L6 ^* i5 Q; l7 ^9 Q- ^Even the federal government’s budget measures to stimulate the industry are expected to have only a mild impact in the short term.”
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The board said a deteriorating consumer confidence has resulted in not just fewer home purchases but also a decline in renovations. “As well, the tighter credit conditions are further dampening new home demand,” it said.

4 {% d% r9 j, t. P$ I7 QWith files from Canwest News Service
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