New home prices fell in most major cities last month, StatCan says. Here’s where – National | 24CA News

New residence costs in Canada dropped by 0.2 per cent month over month in January, in line with Statistics Canada information launched Wednesday.

In its newest New Housing Index report, StatCan mentioned larger mortgage charges continued to place downward stress on new home costs.

“Borrowing costs rose again in January, as the Bank of Canada increased the policy interest rate an additional 25 basis points, bringing it to 4.5%,” StatCan mentioned.

StatCan famous the Canada Mortgage and Housing Corporation (CMHC) reported that 18.7 per cent extra single-family houses had been accomplished however not offered in December 2022 in contrast with the identical month in 2021.

In addition, the worth of softwood lumber went down once more in January, declining a complete of 61.2 per cent for the reason that excessive in March 2022, decreasing builders’ development prices.

These adjustments have been felt by builders who reported deteriorating market situations and decreased development prices as the explanations for the decline in new residence costs, StatCan mentioned.

It additionally reported that Winnipeg (-1.3 per cent) recorded the most important lower in new residence costs final month, adopted by Victoria (-1.1 per cent) and Kitchener-Cambridge-Waterloo, Ont. (-0.9 per cent).

In January, the Canadian Real Estate Association (CREA) predicted home costs might fall nearly six per cent this yr from 2022, which led to a sluggish market as sellers and patrons sat on the sidelines.

The affiliation’s forecast quantities to 495,858 properties altering arms in 2023 and is predicated on gross sales “more or less” stabilizing for the reason that summer season, “suggesting the downward adjustment to sales activity from rising interest rates and high uncertainty may be in the rear-view mirror.”

The identical elements are additionally anticipated to place a damper on the common residence value, which CREA mentioned will attain $662,103 in 2023.

StatCan mentioned that nationally, new residence costs elevated 2.7 per cent on a year-over-year foundation in January 2023, “significantly lower than the 11.8 per cent year-over-year increase reported in January 2022, when the market was still hot.”

CREA additionally reported that the nationwide gross sales to new listings ratio for resale houses stood at 57.8 in January 2023 in contrast with 77.9 in January 2022, pointing to a cooling market.

Calgary recorded the most important year-over-year achieve in new residence costs in January 2023 (+10.9 per cent), adopted by Windsor, Ont. (+5.9 per cent), and Quebec (+5.3 per cent).

On a month-over-month foundation, Calgary (+0.1. per cent) and St. John’s, N.L. (+0.6 per cent), have been the one cities to see new residence costs rise, StatCan mentioned.

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When it involves homebuying, CREA mentioned earlier in February that gross sales hit a 14-year low for the month of January. Sales quantity was 37.1 per cent beneath the identical month final yr, the second-best January ever on report.

Sales have been down three per cent on a month-over-month foundation, which CREA mentioned successfully gave again small positive factors seen in December 2022.

In non-seasonally adjusted phrases, CREA mentioned the nationwide common residence value in Canada was $612,204 in January, down 18.3 per cent yr over yr. CREA’s benchmark Home Price Index is now down 15 per cent from the height seen in February 2022.

Prices drops are steeper in some Ontario and B.C. markets, however CREA famous Calgary, Regina and Saskatoon and St. John’s as some cities the place costs are holding steadier.

— with information from Craig Lord and The Canadian Press

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