Canadian Housing Prices Slightly Down

statistics-canadaAccording to Statistics Canada data that was released last week, housing prices in Canada rose only 0.1 percent in August, which is less than housing experts expected. Since the July increase of 0.3 percent, analysts were predicting a healthier August, forecasting a 0.2 percent rise in prices.

Millan Mulraine, a TD Securities economics strategist, said, “Overall, the report suggests that despite the rebound in the Canadian housing market and the dramatic turnaround in existing home prices in recent months, new home prices remain fairly weak,”

The prices increased in St. John’s, Quebec City and Regina. Each area showed price increases around 1 percent between July and August.

In Quebec, the increase in building costs attributed to the higher prices. The inventory of available lots has been dwindling, contributing to an increase in land value.
Hamilton witnessed the largest decrease of 0.5 percent, along with Windsor and Edmonton, down 0.4 percent and 0.3 percent, respectively.

The new housing price index was down 3.1 percent over last year.

However, the biggest decreases were in Western Canada, with the largest year-on-year increase of 7.5 percent was in St. John’s and Newfoundland.

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