New home prices fell in most major cities last month, StatCan says. Here’s where – National
Canadian new home prices fell 0.2% month-on-month in January, according to Statistics Canada data released Wednesday.
in the latest New housing index According to the report, StatCan says rising mortgage rates continue to put downward pressure on new home prices.
“Borrowing costs rose again in January as the Bank of Canada raised its policy rate by another 25 basis points to 4.5%,” StatCan said.
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StatCan noted that the Canadian Mortgage and Housing Corporation (CMHC) reported an 18.7% increase in single-family homes completed but not sold in December 2022 compared to the same month in 2021. .
Additionally, softwood prices fell again in January, down a total of 61.2% from their March 2022 highs, saving builders construction costs.
StatCan said these changes were felt by builders who reported worsening market conditions and lower construction costs as the reason for the decline in new home prices.
It also reported that Winnipeg (-1.3%) recorded the biggest drop in new home prices last month, followed by Victoria (-1.1%) and Kitchener-Cambridge-Waterloo, Ontario. (-0.9%).
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In January, the Canadian Real Estate Association (CREA) predicted that home prices could fall by almost 6% this year from 2022, but the market languished as sellers and buyers sat on the sidelines.
The association’s projections are based on 495,858 properties set to change owners in 2023, sales that have remained “more or less” stable since the summer, and “rising interest rates and high uncertainty.” It suggests there may be a downward adjustment to sales activity by the rearview mirror.”
The same factors are expected to influence average home prices, which CREA said will reach $662,103 in 2023.
Growth in new home prices slows
Nationwide, new home prices in January 2023 were up 2.7% year-over-year, according to StatCan. ”
CREA also reported that the national sales to new listing rate ratio for resale homes was 57.8 in January 2023 compared to 77.9 in January 2022, indicating a cooling of the market.
Calgary recorded the largest year-over-year increase in new home prices (+10.9%) in January 2023, followed by Windsor, Ontario. (+5.9%), Quebec (+5.3%).
Month-over-month, only Calgary (+0.1%) and NL St. John’s (+0.6%) saw new home prices rise, StatCan said.
As for homebuying, CREA said in early February that January sales hit their lowest level in 14 years. Sales volume was down 37.1% year-over-year, making it his second-best January ever.
Although sales fell 3% month-on-month, CREA said it had effectively returned the small gains seen in December 2022.
According to CREA, the national average home price in Canada was $612,204 in January, down 18.3% from a year ago. CREA’s benchmark house price index is now down 15% from its peak seen in February 2022.
While some markets in Ontario and British Columbia have experienced steep price declines, CREA cites Calgary, Regina, Saskatoon and St. John’s as cities with stable prices.
— Using files from Craig Lord and The Canadian Press
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