MNI DATA ANALYSIS:Cdn New Hse Price Growth Further Stabilizes>

By Yali N'Diaye

     OTTAWA (MNI) - Canada's new housing prices were flat for the fifth 

consecutive month in December, leaving the 12-month growth rate 

unchanged as well, Statistics Canada reported Thursday. 

     In 2018, prices were flat in nine out of 12 months, including the 

last five months. 

     House and land prices were also flat on the month. The former fell 

0.3% year-over-year, the same as in November, while the latter increased 

0.4%. 

     For the fourth quarter, nationwide prices were flat, after 

appreciating by 0.2% in the third quarter, with prices up 0.2% in 

Ontario but down 0.1% in British Columbia and 0.3% in Alberta. 

     Despite a short-lived rebound in the summer, the Canadian housing 

market has been weakening since the beginning of 2018, following the 

introduction of more stringent underwriting regulation combined with 

higher mortgage rates. 

     The more comprehensive Teranet-National Bank National Composite 

House Price Index showed prices are not likely to rebound in January, 

with the composite index down 0.1% on the month after decreasing 0.3% in 

December, led by Western Canada. 

     - FURTHER WEAKNESS IN VANCOUVER, TORONTO 

     Overall, prices were flat or lower in 17 of 27 census metropolitan 

areas, Statistics Canada reported. 

     Prices decreased by 0.1% in Canada's two largest markets, Toronto 

(28% of the index) and Vancouver (13% of the index), due to "unfavorable 

market conditions". 

     On a 12-month basis, prices declined 1.4% in Toronto, where they 

have been weakening since a peak in April 2017. 

     Prices were down 0.2% in Vancouver in December, the first 

year-over-year decrease since March 2015. They have been on a declining 

growth trend since reaching a peak at 9.1% in February 2018. 

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

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