MNI:Largest Canada New Home Price Dip Since `09 Led By Toronto
Canadian new home prices saw the biggest decline in October since 2009 during the global financial crisis, led by Toronto and Vancouver.
Statistics Canada said Friday that its New Housing Price Index fell 0.4% on a monthly basis, including a 1.2% fall in Toronto and a 0.6% decline in Vancouver. The overall nationwide results were more balanced, with declines in nine of 27 census metropolitan areas, increases in seven areas, and little change in the remaining 11.
Builders have reported drags from higher building material and labor costs, and the pinch from the Bank of Canada's past rate increases before officials turned to cuts in June. Earlier this week CMHC reported a monthly rise in housing starts but also a weakening trend over the last two years, foiling government efforts to boost supply and affordability. From a year earlier StatsCan's price index was down 0.2%.
Before the BOC began cutting interest rates, one of the reasons it cited for keeping tight policy was signs of lingering upside price pressure in housing and some other services.