New home prices fall for first time in decade

vista

Led by cooling markets in Alberta and British Columbia, national prices on new homes declined month over month in October for the first time in over a decade, Statistics Canada said Thursday.

/ E+ v6 R* p7 x( [( ^; O
7 p  `: W) X* D- I# b9 j2 Y& zThe average cost of a home in Canada fell 0.4% between September and October, the federal agency said. It was the first monthly decrease nationally since September, 1998.


: \, ?3 h1 H! [- VNew home prices in Edmonton and Calgary continued to come off peaking demand last year in October.
* i, w  {2 R2 @( f
3 F, q1 X8 I8 k/ x3 x
4 J/ m+ K- J1 N  ^* c$ iPrices have fallen 7.7% year-over-year in Edmonton, marking the city's largest annual decline in more than 23 years. Calgary prices are down 1.6% from a year ago in the biggest retreat since November 1991, StatsCan said.
! l: c: ]2 F$ w4 ^) W

Month to month, prices in Edmonton and Calgary fell by 1.7% and 0.6%, respectively.
5 H& ?: M; E0 x& v! O8 R: w) A
0 \- s+ `$ x% o: a/ w6 N# T4 j7 u" R
Vancouver, where home prices have risen the fastest in recent years, saw a monthly drop of 1.1% in October as demand cooled rapidly. Year over year, prices were down 0.4%.

1 B( U% Y0 v, _' }9 F) n
! J8 T: b5 j  y9 f; k7 B+ EIn Victoria, contractors' selling prices decreased 1.1% year-over-year StatsCan said, down from an annual increase of 0.2% in September.
- F, ^  y/ K+ M& F, V( j

Upward price pressure remained torrid in some markets as new home prices in Regina grew again in October, rising to 22.8% more expensive than a year ago. In contrast, Saskatoon prices were a modest 3.6% higher than a year ago while prices tumbled 1.6% from September to October as "builders continued report difficult market condition."
8 n# y4 |" B) E% s+ {, i
$ y# p* n6 {+ @9 E
Compared with last October, contractors' selling prices in Ottawa were 4.3% higher, while new homes in Toronto were 3% more expensive, StatsCan said.

© Copyright (c) National Post