According to Statistics Canada, the national new home price index was unchanged month-over-month in December. Prices were down or unchanged in 21 of the 27 census metropolitan areas (CMAs) surveyed.
New home prices decreased the most month-over-month in Halifax (-1.2 percent), followed by Regina (-0.9 percent). Builders in these CMAs attributed the decline to weaker market conditions.
The largest month-over-month increases in new home prices were seen in the CMAs of Calgary (+0.4 percent), Saskatoon and Sherbrooke (each up 0.2 percent), where builders linked the gains to construction cost.
Nationally, new home prices decreased 0.9 percent year-over-year in December 2023. Prices were down in 21 of the 27 CMAs measured by the survey.
Nationally, in December 2023 the largest annual declines were seen in Ottawa (-4.8 percent) and Victoria (-4.2 percent). These decreases were in contrast to the annual increases reported in Ottawa (+6.6 percent) and Victoria (+3.7 percent) in December 2022. Sales activity in the resale market was depressed in both cities according to Canadian Real Estate Association (CREA), with Ottawa (-10.7 percent) and Victoria (-8.7 percent) reporting annual decreases in 2023 compared with the previous year.
Contrary to the regions that have seen year-over-year price declines in December 2023, new home prices increased the most in the relatively more affordable markets in Québec (+3.3 percent) and Calgary (+2.7 percent). The single-family benchmark prices of resale homes recorded by CREA in December 2023 were $392,500 in Québec and $635,600 in Calgary, compared with $779,100 nationwide.