New home prices fall for first time in decade

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Led by cooling markets in Alberta and British Columbia, national prices on new homes declined month over month in October for the first time in over a decade, Statistics Canada said Thursday.


The average cost of a home in Canada fell 0.4% between September and October, the federal agency said. It was the first monthly decrease nationally since September, 1998.


! K2 y  {2 C+ I+ V- ?6 I5 M/ z- ~New home prices in Edmonton and Calgary continued to come off peaking demand last year in October.


: y' j+ ~5 n9 N, vPrices have fallen 7.7% year-over-year in Edmonton, marking the city's largest annual decline in more than 23 years. Calgary prices are down 1.6% from a year ago in the biggest retreat since November 1991, StatsCan said.


Month to month, prices in Edmonton and Calgary fell by 1.7% and 0.6%, respectively.
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Vancouver, where home prices have risen the fastest in recent years, saw a monthly drop of 1.1% in October as demand cooled rapidly. Year over year, prices were down 0.4%.


In Victoria, contractors' selling prices decreased 1.1% year-over-year StatsCan said, down from an annual increase of 0.2% in September.


Upward price pressure remained torrid in some markets as new home prices in Regina grew again in October, rising to 22.8% more expensive than a year ago. In contrast, Saskatoon prices were a modest 3.6% higher than a year ago while prices tumbled 1.6% from September to October as "builders continued report difficult market condition."
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0 L: t- e  M2 `' X% HCompared with last October, contractors' selling prices in Ottawa were 4.3% higher, while new homes in Toronto were 3% more expensive, StatsCan said.

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