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MNI DATA ANALYSIS:Canada New Hse Prices +0.2% Y/Y,Further Slow>

By Yali N'Diaye
     OTTAWA (MNI) - Canada's new housing prices were flat for the second 
consecutive month in September, lowering the 12-month growth rate to 
0.2%, the lowest since January 2010, Statistics Canada reported 
     New house only prices edged down another 0.1% over the month, 
leaving the 12-month rate flat, the lowest since December 2009. 
     Land only prices edged up 0.1% in September after remaining steady 
in August, bringing down the 12-month gain to 0.4% from 0.6%, the lowest 
since November 2010. 
     The more comprehensive Teranet-National Bank National Composite 
House Price Index was also flat in September, but up 2.1% 
     Higher mortgage rates against the backdrop of a monetary policy 
normalization as well as more stringent mortgage financing rules have 
weakened demand for new homes. 
     However, Canada Mortgage and Housing Corporation reported Thursday 
that housing starts increased to a seasonally adjusted annual rate of 
205,925 units in October from 189,730 in September. That being said, the 
six-month trend decreased to 206,171 units from 207,809. 
     "The national trend in housing starts declined for a fourth 
consecutive month in October, which leaves the trend at its lowest level 
since February 2017," said CMHC Chief Economist Bob Dugan. 
     On a quarterly basis, new housing prices still managed to edge up 
0.2% in the third quarter on average from the second quarter, when they 
had contracted by 0.1%. 
     House only prices rose 0.2% in the third quarter, erasing the 
second quarter decrease, while land only prices continued to grow at a 
steady pace of 0.1%. 
     Regionally, prices declined in 12 metropolitan areas, were flat in 
eight areas, and increased in just seven areas on the month. 
     While prices remained flat in Toronto, they appreciated by 0.4% in 
Vancouver, more than erasing August's 0.2% decrease. 
     After discounts reported in previous months, builders in Vancouver 
returned to list prices, the report said. 
     On a 12-month basis, however, price growth in Vancouver continued 
to slow, reaching 0.6%, the slowest pace since May 2015. Year-over-year 
price gains have been diminishing since peaking at 9.1% in February this 
     Over the third quarter, prices in Vancouver contracted 0.1% after 
rising 0.1% in the second quarter. At the provincial level, prices in 
British Columbia decreased 0.1% in the third quarter despite a 0.2% gain 
in September. 
     Instead, prices in Ontario rose 0.3% in the third quarter, 
offsetting the previous quarter decline, although they remained flat in 
     In Toronto, prices were unchanged in September from August, but 
still down 1.2% from a year earlier. 
     After falling 0.9% in the second quarter, prices in Toronto 
recovered 0.1% in the third quarter. 
--MNI Ottawa Bureau; email:

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