Monthly price gains are at a level not seen in two years
New home prices for Canada ticked up by just 0.1% in July compared to June – the smallest monthly increase since June 2020, and markedly lower than the average increases witnessed during the first two quarters of 2022, according to Statistics Canada.
Gains in five out of the 27 census metropolitan areas surveyed by StatCan were not enough to budge residential values upward, as prices remained unchanged in 17 and went down in another five CMAs last month.
The greatest price decline in July was observed in the Kitchener–Cambridge–Waterloo region, with its 0.7% price drop also being its first since July 2019. The benchmark price for a single-family home in the region as registered through the MLS fell by 5.7% from June due to decelerating demand, rising mortgage rates, and sustained inflationary pressures, StatCan said.
Read more: Housing affordability deteriorates to new lows
On an annual basis, new home prices decelerated for the fourth consecutive month, despite a modest 7.5% increase.
Year-over-year prices for new homes increased the most in Calgary for the third month in a row (up by 14.8%), with total residential sales among the highest levels recorded in the market so far.
Another major contributor to price growth was Winnipeg, posting a 14.5% annual increase and a 72% sales-to-listings ratio. This indicates a seller’s market, along with a strong potential of buyers having more selection and less competition on pricing, StatCan said.
