StatCan index records its biggest monthly decline, reflecting affordability and inventory pressures
Canada’s new home prices posted their sharpest monthly decline in more than 14 years in October as affordability pressures and rising inventories weigh on demand.
The New Housing Price Index (NHPI) dropped 0.4%, according to Statistics Canada (StatCan). On an annual basis, the NHPI fell 0.2% in October, reflecting challenges in many parts of the country.
Toronto and Vancouver, Canada’s largest housing markets, led the decline in October. New home prices in Toronto fell 1.2%, while Vancouver saw a 0.6% drop. Builders in these cities reported weaker market conditions, prompting them to offer incentives such as cash credits and design upgrades to attract buyers.
Toronto has faced a slowdown in sales of new single-family homes, which include detached, semi-detached, and townhomes. Data from Altus Group showed that as of September, year-to-date sales in this category were down 16%.
Vancouver is grappling with a rising inventory problem. Canada Mortgage and Housing Corporation (CMHC) reported a 48.8% year-over-year increase in completed but unsold single-family homes in the city as of September. Windsor joined Vancouver with a similar monthly decline of 0.6%.
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While many markets struggled, Winnipeg bucked the trend with a 0.4% increase in new home prices in October. The city’s affordability relative to the national average appears to be driving buyer interest, with the Winnipeg Regional Real Estate Board reporting a 19% year-over-year rise in detached home sales.
Nationally, the NHPI recorded mixed results across Canada’s 27 census metropolitan areas (CMAs). Prices fell in nine regions, remained unchanged in 11, and increased in seven.
Among the hardest-hit regions were Kitchener–Cambridge–Waterloo and Ottawa, both down 2.8%, and Toronto, down 1.5%.
Not all regions saw declines. Calgary led annual price increases with a 4.5% gain, followed by Trois-Rivières at 3.1%. These markets demonstrate how regional dynamics can create opportunities even in a slowing national market.
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