According to Statistics Canada, the national index declined 0.2 percent in November. Prices were down or unchanged in 25 of the 27 census metropolitan areas (CMAs) surveyed.
In November, new home prices decreased the most month over month in Sherbrooke (-1.2 percent), St. John's and Hamilton (each down 1.0 percent), with builders reporting weak market conditions as the reason for the declines.
Nationally, new home prices decreased 0.9 percent year over year in November. Prices were down in 20 of the 27 CMAs measured by the survey.
Year-over-year, new home prices have been declining since April 2023. This is due in part to the rapidly increasing borrowing costs seen in Canada since the spring of 2022. From March 2022 to July 2023, the Bank of Canada increased the policy interest rate to rein in inflation. As mortgage rates followed suit, demand for housing slowed over the same period, working to cool prices in the new housing market. In November, with the policy interest rate at 5.0 percent, the national index stood at 124.4, its lowest level since February 2022 (123.2), when the policy interest rate was at 0.25 percent.
The largest annual declines in November 2023 were in Ottawa (-4.7 percent) and Victoria (-4.2 percent), while the largest increases were reported in Québec (+3.2 percent) and Calgary (+2.4 percent).