New house prices post largest gain in 2 years

by Steve Randall15 Nov 2019

The price of new homes in Canada increased 0.2% in September compared to the previous month.

The gain was the largest in two years and was driven by another strong month for the Kitchener—Cambridge—Waterloo market, recording a second consecutive monthly increase of 2.5%. This market is seeing strong demand due to its relative affordability compared to Toronto and favourable market conditions.

Statistics Canada’s New Housing Price Index also shows a 1% increase in new home prices for Ottawa (where builders reported higher construction costs) and Trois-Rivières (with more favourable market conditions) in September.

Vancouver and Kelowna saw new home prices fall, by 0.6% and 0.3% respectively.

However, nationally on a year-over-year basis prices were down 0.1%, the fourth consecutive monthly decline.

Calgary and Vancouver accounted for the largest annual drop with 2.2% each.

Ottawa (+6.3%) and Montréal (+4.9%) posted the largest year-over-year increases in September, because of favourable market conditions and higher construction costs, which are largely a result of a skilled labour shortage. This was the largest year-over-year increase in Ottawa since February 2005 and the largest in Montréal since August 2008.

Are you looking to invest in property? If you like, we can get one of our mortgage experts to tell you exactly how much you can afford to borrow, which is the best mortgage for you or how much they could save you right now if you have an existing mortgage. Click here to get help choosing the best mortgage rate

Market update:

Get help choosing the best mortgage rate

Just fill in a few details, and we'll arrange for a Mortgage adviser to help you find the best mortgage for your needs

  • How soon do you want a mortgage?
  • Name
  • Where do you live?
  • Phone number
  • E-mail address

Industry news

Submit a press release


Do you invest in commercial properties?