MNI DATA ANALYSIS:Canadian Hse Price Growth Further Slows Y/Y>

By Yali N'Diaye

     OTTAWA (MNI) - Canada new housing prices edged up 0.1% in July, the 

same pace as in June, but price appreciation slowed to 0.5% 

year-over-year, marking the smallest gain since January 2010, Statistics 

Canada reported Thursday. 

     Among the 27 metropolitan areas surveyed, 15 reported rising prices 

on the month, with builders mostly citing market conditions and higher 

construction costs. According to the monthly report on industrial 

prices, lumber and other wood product prices were up 0.4% on the month 

and nearly 11% year-over-year in July. 

     While the monthly increase was steady, price gains for both house 

only and land only lost momentum. House only prices rose 0.1% after 

increasing 0.3% in June, while land only prices were flat after edging 

up 0.1%. 

     On a 12-month basis, house only prices appreciated by 0.4%, the 

smallest increase since December 2009. Land only prices were up 0.6%, 

the smallest gain since November 2010. 

     Overall, the national 12-month growth rate has been on a slowing 

trend since reaching a peak at 3.9% in the spring of 2017, falling below 

the 1.0% mark in May 2018. 

     Year-over-year comparisons also reflect the fact that monthly gains 

were robust through the spring of 2017, and were still up 0.4% in July 

2017. However, between August and December 2017, monthly price gains 

fluctuated between 0.0% and 0.2%, suggesting 12-month price increases 

could pick up from next month. 

     --TORONTO, VANCOUVER DIVERGE 

     On a regional basis, prices in Toronto rose 0.1%, marking the first 

increase since October 2017, although they were still down 1.2% on a 

12-month basis. 

     Builders cited better market conditions in July as the main reason 

for higher prices in Toronto. 

     In Vancouver, on the other hand, prices decreased 0.2% on the 

month, the first decline since February 2017 and the largest since 

November 2016. Builders cited promotions as the main reason. 

     On a 12-month basis, prices in Vancouver rose 1.2%, the smallest 

gain since June 2015. 

     At the provincial level, prices in British Columbia edged down 0.1% 

in July, bringing down the 12-month rate to 1.3% from 3.2%, the smallest 

since August 2015. Price growth in British Columbia has been slowing 

since January 2018, when the 12-month rate peaked at 7.9%. 

     In Ontario, prices edged up 0.1% in July, but only increased 0.2% 

year-over-year, little changed from the 0.3% increase in June. 

     The more comprehensive Teranet-National Bank National Composite 

House Price Index released Thursday showed that prices rose 0.2% in 

August, with a 12-month rate of 1.4%, the smallest since November 2009. 

--MNI Ottawa Bureau; email: yali.ndiaye@marketnews.com

[TOPICS: MACDS$,M$C$$$]