New-Home Prices in December

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February 12, 2010

Ottawa by Alex Indigo

With the still very-attractive-for-buyers low interest rates, the new-home prices in Canada increased again in the last month of 2009, according to the announcement of Statistics Canada from yesterday. It was actually the sixth monthly gain in a row in new home prices. However, in comparison with December 2008, the prices were still 0.9 percent lower.

The new housing price index in December 2009 grew by the same amount as in November, 0.4 percent. The most significant increases were reported in Ottawa-Gatineau, by 0.8 percent. Toronto, Oshawa, St. John’s, and Vancouver, all with 0.7 percent growth, were the following. "In Toronto price increases were due to several builders revising the value of their models and adjusting their prices upward as well as to stronger market conditions." claims the federal agency.

Unsurprisingly, there were declines too. Out of 21 metropolitan cities decreases were reported only in Victoria and Calgary. New home prices declined by 0.2 percent in both of them. That is pretty good, in more than 90 percent of the surveyed cities, the prices grew. Nice.