Statistics
Canada reported on Wednesday the New Housing Price Index (NHPI) edged down 0.1
per cent m-o-m in January 2024, following a flat m-o-m performance in the previous month.
Economists had predicted
the NHPI to inch up 0.1 per
cent m-o-m in January.
According to
the report, 16 out of the 27 census metropolitan areas (CMAs) surveyed posted flat
m-o-m performance in new home prices last month, while 5 CMAs recorded decreases,
and the remaining 6 registered gains.
Ottawa (-0.4
per cent m-o-m) logged the steepest decline in new home prices last month,
with some builders offering promotions to generate sales. Meanwhile, Edmonton
(+0.8 per cent m-o-m) and Trois-Rivières (+0.4 per cent m-o-m) registered the
strongest advances in new home prices in January, with builders in these two
CMAs pointing to increased construction costs and improved market conditions as
reasons for price gains.
In y-o-y terms, the NHPI fell 0.7 per cent in January,
following a 0.9 per cent decrease
in the previous month. This marked the 10th straight annual drop in the NHPI.