Skip to content

New property prices continue falling in some parts of Canada

But it wasn't an even picture with some regions experiencing considerable price increases, according to the latest figures from Statistics Canada.

The average price on a new house declined 0.3%, the federal agency said, as demand continued to cool across the national real estate market.

The dip confirms the first reverse in home prices in more than a decade, following the 0.4% decline experienced in October.

But property investors need to examine the statistics in detail as not everywhere saw a decline. St. John's recorded the largest annualized gain, with the value of a new home up more than 25% from 2007, and the monthly increase at 3.4%.

In a sign that Saskatchewan is beginning to feel the bite of a recession it has largely avoided so far, home prices were down 0.5%.

New home prices in Edmonton recorded an annual plunge of 7.9% and prices dipped 2.5% in Calgary. Prices fell 0.3% in Edmonton and 1.1% in Calgary between October and November.

Developers are cutting prices in a number of regions. On the West Coast, builders cut new home prices in Vancouver by 1.7% in November, a trend continued in Victoria.

Property markets in Eastern Canada, which have shown more stable supply-demand conditions, continued to rise, Statscan said.

Compared with November 2007, selling prices were 4.3% higher in Ottawa and 2.0% higher in Toronto.

In Quebec, the annual growth rate was 5.4%, while in Montreal, prices increased 4.6%, the agency said.

No market east of Saskatchewan experienced a month-to-month decline in new home prices.