Canada

Thursday, June 13, 2019 - 08:30

MNI CANADA IMPACT: New Home Prices Flat For Third Month in April


By Greg Quinn

OTTAWA (MNI) - Canadian new home prices were unchanged for a third month in April, as declines in Toronto were matched with gains in other parts of the province of Ontario.

Toronto prices fell 0.1% on the month in Statistics Canada's new home price index published Thursday. In Vancouver, the other city that has drawn concern about a potential housing correction, prices declined 0.2%.

Prices were flat or declined in 19 of 27 cities in the report. Gains in Ontario cities such as Ottawa and London helped keep the overall index steady.

The index rose 0.1% in April from a year ago. The report covers single-family homes and some semi-detached properties like row houses, but doesn't track condominiums that have been a major source of growth in Vancouver and Toronto.

The index has been flat since the start of 2018, ending years of gains that coincided with a housing boom in Toronto and Vancouver. Governments have introduced regulations in recent years to slow the pace of mortgage lending and clamp down on potential speculation in Canada's biggest cities. The Bank of Canada and government officials have said the regulations are working to ease the risks of a record buildup of consumer debt.

--MNI Ottawa Bureau; email: greg.quinn@marketnews.com

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