Canadian new home prices are flat, but the biggest markets are seeing volatility. Statistics Canada (Stat Can) data shows the New housing price index (NHPI) was flat in January. Toronto and Vancouver both made declines, while Montreal ripped higher.
Canadian New Home Prices Are Mostly Flat
The NHPI for Canada is showing relatively flat movement – and has been stagnating. Prices were flat in January, when compared to a month before. Compared to the same month last year, prices moved just 0.19% higher. Over the past 5 years, the NHPI across Canada has increased 8.27%. This is largely due to price growth stagnation over the past two years.
Canadian New Housing Price Index
The 12 month percent change for Montreal’s NHPI.
Source: Stat Can, Better Dwelling.
Toronto New Home Prices Fall Less Than 1%
Toronto’s NHPI is actually falling, but maintains substantial gains over the long term. The NHPI fell 0.39% in January, when compared to a month before. The substantial decline in the month means prices are now 0.87% lower than the same month last year. Over the past 5 years, prices moved 14.85% higher though – almost twice the national movement.
Toronto New Housing Price Index
The 12 month percent change for Montreal’s NHPI.
Source: Stat Can, Better Dwelling.
Vancouver New Home Prices Are Falling
Vancouver’s new home prices have been tumbling a little recently, but are still up a lot over time. The city’s NHPI fell 0.19% in January, and is now down 2.39% from the same month last year. Compared to 5 years ago, prices are still 13.37% higher. They’ve been falling more than the national index recently, but are still higher over the past 5 years.
Vancouver New Housing Price Index
The 12 month percent change for Montreal’s NHPI.
Source: Stat Can, Better Dwelling.
Montreal New Home Prices Are Breaking Out
Montreal new home prices are rising faster than the national index by every measure. The city’s NHPI is up 0.27% in January, with prices now 6.77% higher than the same month last year. Compared to 5 years ago, prices for the city are now 13.95% higher. New home prices in Montreal have increased more than they have in Vancouver – which is really something.
Montreal New Housing Price Index
The 12 month percent change for Montreal’s NHPI.
Source: Stat Can, Better Dwelling.
Canadian new home prices are stagnant as of right now. Even the largest markets making price declines, aren’t dropping all that much. Most of this likely has to do with the rise in new home construction. Canada is building a lot more homes than it was 5 years ago. This is especially true in cities like Toronto and Vancouver, which are seeing construction booms. Prices are still sticky though. This is typical of economies that haven’t seen a negative economic shock.
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How does Stats Can source their information, because that’s really out of whack for Vancouver (and Toronto from what I’m hearing). Absorption is very, very low – and there’s huge price cut incentives. If this is survey, they’re being played IMO.
New home sales are structured with rebates and incentive upgrades to obfuscate the final price. It’s hard to capture exactly how the projects are being priced as a result.
Hahahaha yeah, fun times, remember when they were giving away fancy new “free” vehicles with townhomes in the lower mainland? Not sure exaclty how the economists are supposed to price in an EV with who knows what kind of options once it’s finally in the driveway.
https://www.vancouverisawesome.com/real-estate/buy-townhouse-free-tesla-real-estate-incentive-south-surrey-vancouver-bc-1945666
There are no good jobs in Toronto. University graduates are working for free for several years just to get work experience to work for $14/hr for a paid job. At least the factory workers in China get paid a wage.
Yeah no good jobs in Toornto( and the GTAA by extension) that is how the regions is such a huge net contributor to federal and provincial coffers because everyone is being paid mininmum wage. BTW have you heard of the tech boom in last 5 years in this region? If tech is for you get into a trade
There are newcomers with Phds from their home countries serving coffee at Tim Horton’s for $14/hr, while the unlucky and desperate ones (such as international students who believe that enrolling in Canada is an automatic PR) are working for $5/hr at construction companies.
Date released = HILARIOUS, I live in BC and feel bad for people who are getting into this market. People check out the PRICE of Gold, this should tell people how poor the economy really is and how much weaker the dollar is going to become. Brace yourselves in certain housing markets throughout Canada for a WILD ride.