According to Statistics Canada, the national new home price index edged down 0.1 percent month over month in January. Prices were down or unchanged in 21 of the 27 census metropolitan areas (CMAs) surveyed.
The largest month-over-month decrease in January was recorded in Ottawa (-0.4 percent), with some builders offering promotions to generate sales. This was the 13th consecutive monthly decline for Ottawa. Notable price decreases were also observed in Vancouver (-0.3 percent), Montréal (-0.3 percent) and Calgary (-0.2 percent).
In January, the largest month-over-month increase in new home prices was seen in Edmonton (+0.8 percent) and Trois-Rivières (+0.4 percent). Builders in these two CMAs pointed to increased construction costs and improved market conditions as reasons for price increases.
Nationally, new home prices were down 0.7 percent year over year in January. This marked the 10th consecutive annual decrease recorded and the longest period of consecutive declines since 2009.
Ottawa (-5.0 percent) reported the largest year-over-year decline in January, followed by Victoria (-3.2 percent).
The largest annual increases in January were reported in Québec (+3.3 percent) and Calgary (+2.5 percent).