New-Home Prices Dip in Canada, Signaling Market Stabilization

1 Mins read

In the month of July, new-home buyers in Canada experienced a slight decrease in house prices, suggesting a steady market following this year’s rebound. According to Statistics Canada, the new-house price index declined by 0.1% compared to the previous month, after two consecutive months of growth.

On a year-on-year basis, prices in July were 0.9% lower, signaling a correction in the market. Sales of existing homes also saw a decline in July, dropping by 0.7% from the previous month. This decrease was largely attributed to a decline in Toronto, according to data released by the Canadian Real Estate Association last week.

Despite the dip in sales, benchmark existing house prices, which are calculated similarly to the S&P CoreLogic Case-Shiller National Home Price Index, rose by 1.1% from June. Currently, they are only 1.8% below levels seen a year ago.

The Bank of Canada recently raised its key policy rate to 5%, reaching a 22-year high. While policymakers have paused for now, they will closely monitor incoming data to determine if further rate hikes are necessary at their next meeting in September.

Statistics Canada conducted a survey in 27 metropolitan areas and found that prices for new homes decreased in eight areas, remained unchanged in 12 areas, and increased in seven areas. The largest price declines were observed in Victoria, followed by the greater Sudbury region in Ontario and the national capital Ottawa. This weakening of the market was attributed to the central bank’s decision to raise rates by a quarter percentage point in July.

It is important to note that the new-house price data from Statistics Canada does not include prices for newly built condominium units.

Related posts

Vice Media Layoffs and Changes

1 Mins read
NEW YORK — In a memo to staff on Thursday, Vice Media’s CEO revealed plans to lay off several hundred employees and…

Intuitive Machines' Moon Landing

2 Mins read
Historic Achievement by Intuitive Machines Inc. Intuitive Machines Inc. made history on Thursday as their Odysseus spacecraft became the first commercial lander…

Bouygues Telecom to Acquire La Poste Telecom

1 Mins read
By Andrea Figueras Bouygues Telecom, a part of the Bouygues group, has announced the signing of an exclusivity agreement with La Poste…

Leave a Reply

Your email address will not be published. Required fields are marked *

+ 86 = 90