Vancouver market conditions

OTTAWA — Prices for new homes edged up in October for the third straight month, mainly due to increases in Toronto and Vancouver, Statistics Canada said Thursday.

 

The federal agencies New Housing Price Index rose 0.1 per cent during the month, following a 0.2 per cent increase in September.

 

The October gain was in line with economists' forecasts.

 

Year-over-year, new-home prices advanced 2.5 per cent in October, compared to a 2.7 per cent annual rate in September.

 

Statistics Canada said prices in Toronto were up 0.2 per cent, while Vancouver recorded a 0.1 per cent rise.

 

Prices were unchanged in nine of 21 census metropolitan areas tracked by the agency. Declines were recorded in Calgary (down 0.6 per cent), London, Ont. (down 0.3 per cent), Victoria (down 0.2 per cent) and Regina (down 0.1 per cent).

 

Despite the decline in October, Regina has the strongest year-over-year increase, at six per cent.

 

"In Calgary, a few builders offered discounts in order to spur sales in October, while in London, some builders recorded lower negotiated selling prices," the agency said.

 

Meanwhile, TD Economics on Thursday revised its 2011 forecast for home sales up eight per cent to 420,000 units. That's still down three per cent from its estimate for 2010 of 450,000 units. For 2012, the outlook has been downgraded to 400,000 units from 437,000.

 

"Sales have done better as borrowing rates hit all-time lows in October," TD said in a report. "Better affordability will provides sales with near-term momentum while the Bank of Canada holds its policy rate at one per cent until mid-2011. However, higher interest rates will dampen sales thereafter."

 

 

October New Housing Price Index (% change m/m y/y):

 

Canada total 0.1 2.5

 

- House only 0.1 3.4

 

- Land only 0.0 0.4

 

St. John's 0.0 4.9

 

Charlottetown 0.0 -1.6

 

Halifax 0.0 0.7

 

Saint John, Fredericton, Moncton, N.B. 0.0 2.0

 

Quebec 0.3 2.1

 

Montreal 0.1 4.3

 

Ottawa-Gatineau 0.1 3.7

 

Toronto and Oshawa, Ont. 0.2 2.9

 

Hamilton, Ont. 0.0 1.8

 

St. Catharines-Niagara, Ont. 0.1 1.4

 

London, Ont. -0.3 2.0

 

Kitchener-Cambridge-Waterloo, Ont. 0.0 1.5

 

Windsor, Ont. 0.0 -0.7

 

Greater Sudbury and Thunder Bay, Ont. 0.5 -1.2

 

Winnipeg 0.0 5.2

 

Regina -0.1 6.0

 

Saskatoon 0.8 3.8

 

Calgary -0.6 1.1

 

Edmonton 0.0 1.0

 

Vancouver 0.1 1.9

 

Victoria -0.2 -0.8

 

Source: Statistics Canada

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