StatCan said the national new home price index ticked upwards for the first time since last August
New home price growth in May was impelled by steadily rising construction costs, according to developers.
Data from Statistics Canada showed that the national new home price index saw its first month over month increase since August 2022, with a slight 0.1% uptick in May.
Prices were up in six of the 27 census metropolitan areas surveyed by StatsCan in May 2023. Eight other markets saw declines, while prices in the 13 remaining CMAs were unchanged last month.
The most significant monthly price increases were registered in the Quebec (up by 0.9%), Calgary (up by 0.8%), and Kelowna (up by 0.6%) CMAs. In particular, May marked the second straight month where Quebec reported the largest price increase among the CMAs surveyed by StatsCan.
Conversely, the largest decreases were seen in Sudbury (down by 1.2%) and Sherbrooke (down by 0.7%), with builders citing weak market conditions as the main driver of the decline.
On an annual basis, new home prices declined by 0.6% May, a noticeable slowdown from the 8.4% increase recorded the same time last year. StatsCan attributed the drop to the Bank of Canada’s elevated interest rates, which had a material impact on the housing market.
The largest year over year increases in May were reported in Quebec (up by 4.1%), Charlottetown (up by 1.1%), and St. John’s (up by 1.1%). The worst annual drops in new home prices were registered in Victoria (down by 2.7%), St. Catharines–Niagara (down by 2.4%), and Edmonton (down by 2.3%).
