MNI DATA ANALYSIS:Cdn New Hse Price Growth Slowst Since Jan'10>

By Yali N'Diaye

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

consecutive month in October, lowering the 12-month growth rate to 0.1%, 

the smallest increase since January 2010, Statistics Canada reported 

Thursday. 

     House and land prices were also flat on the month. 

     On a 12-month basis, house only prices contracted 0.2%, the largest 

and first decrease since December 2009. Land only prices rose at a 

steady pace of 0.4% year-over-year. 

     The more comprehensive Teranet-National Bank National Composite 

House Price Index released Wednesday suggests November could see further 

weakness, as the index fell 0.3%, with broad based declines. 

Teranet-National Bank pointed out a November decrease was unusual. 

     The slowdown in house price gains is occurring against the backdrop 

of tighter monetary and macro prudential policies nationally, combined 

with targeted measures at the provincial level in Ontario and British 

Columbia. 

     In its Dec. 5 policy statement, the Bank of Canada said it 

"continues to monitor the impact on both builders and buyers of tighter 

mortgage rules, regional housing policy changes, and higher interest 

rates." 

     After a "significant slowdown" in recent quarter, housing markets 

are stabilizing, the BOC concluded. 

     - VANCOUVER, TORONTO PRICE GROWTH SLOWS 

     Overall, prices were flat in eight metropolitan areas, unchanged in 

eight, and higher in 11 areas. 

     Toronto and Vancouver, the most expensive housing markets, have 

been experiencing a price growth slowdown since reaching their peaks in 

April 2017 and February 2018, respectively. 

     In Toronto, prices contracted 0.1% on the month, as builders 

offered design credits, while also citing lower negotiated selling 

prices. 

     On a 12-month basis, prices in Toronto fell 1.4%, the largest 

decline since September 1996. Prices have been decreasing on a 12-month 

basis since last April. 

     In Ontario, prices edged up 0.1% both on the month and 

year-over-year. 

     In Vancouver, prices were flat on the month after rising 0.4% in 

September. The 12-month price gain, however, slowed to 0.4%, the lowest 

rate since March 2015. 

     At the provincial level, prices were flat in British Columbia on 

the month, for a 12-month gain of 0.4%. 

     On the supply side, single-family housing starts were down 

year-to-date in October from a year earlier in both Toronto (-40.3%) and 

Vancouver (-11.9%). 

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

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