Canada - Boliger Index

New housing prices in Canada were down 0.1 percent month-over-month in November 2019, following a 0.1 percent gain in October, with the largest declines being recorded in Regina (-1.7 percent) and Edmonton (-1.0 percent). Builders in both census metropolitan areas offered cash rebates as incentives to buyers and also reported lower negotiated selling prices. Meanwhile, new house prices rose the most in Montréal (1.1 percent), the eighth consecutive monthly increase. New house prices were also down 0.1 percent on a year-over-year basis in November. Prices have been flat or declining since May 2019.

Canada new home prices increased 0.2 percent in September 2019, the largest rise in two years, following a 0.1 percent gain in the previous month and above market consensus of a 0.1 percent increase. Prices in Kitchener—Cambridge—Waterloo advanced for the second consecutive month (1.5 percent), as favourable market conditions and more affordable prices relative to Toronto continued to influence demand in the region. Higher cost of new houses were also seen in both Ottawa (1 percent) and Trois-Rivières (1 percent), as builders cited construction costs as the primary reason for the increase in Trois-Rivières and favourable market conditions for the rise in Ottawa. On the other hand, prices dropped in Vancouver (-0.6 percent) and Kelowna (-0.3 percent). Year-on-year, new home prices declined 0.1 percent, after a 0.3 percent fall in the prior month.

Canada new home prices rose 0.1 percent in August of 2019, following three consecutive months of declines while markets had forecast prices to remain unchanged. The largest increases of new home prices were in Sherbrooke (2.1 percent), Montréal (1.1 percent) and Trois-Rivières (0.5 percent), due to higher construction costs. Meanwhile, the price of new homes declined in Oshawa and St. Catharines–Niagara (both down 0.4 percent) because of unfavourable market conditions. Year-on-year, new home prices dropped 0.3 percent in August, following a 0.4 percent decrease in the previous month.

Canada's new home prices dropped 0.1 percent for the third consecutive month in July of 2019, while markets had forecast prices to remain unchanged. Edmonton (-0.8 percent) reported the largest price decrease in July, with builders offering promotions and cash rebates to stimulate sales. Also, prices fell in Toronto (-0.6 percent) and Vancouver (-0.5 percent), amid unfavourable market conditions and lower negotiated selling prices. On the other hand, prices continued to increase in Montréal (1.6 percent) and Ottawa (0.9 percent). Year-on-year, new house prices went down 0.4 percent, the largest decrease in almost a decade.

Canada's new home prices dropped 0.1 percent for the second consecutive month in June 2019, while markets had forecast prices to remain unchanged. Calgary reported the largest price decrease (-1 percent), with builders tying the decrease to deteriorating market conditions. Meanwhile, the prices of new homes were up in Gatineau (1 percent) and Ottawa (0.6 percent), with the rise primarily attributable to higher construction costs amid weather-related disasters in a context of a skilled labour shortage. Also, new home prices in Hamilton were up 0.7 percent, the largest monthly increase since July 2017 on the back of favourable market conditions and more affordable housing prices in Hamilton relative to Toronto.

Canada new home prices dropped 0.1% in May of 2019, following three consecutive months of no change and against market expectations of a 0.1 percent rise. The largest declines of new home prices were in Saskatoon (-0.5%) and Victoria (-0.4%), amid deteriorating market conditions. Additionally, new home prices were also down in Edmonton, Kelowna, Toronto and Vancouver (each down 0.3%). In contrast, Charlottetown (+1.0%) had the largest price increase, with the rise attributed to higher construction costs. Year-on-year, new home prices were flat in May, after a 0.1 percent gain in the previous month.