Canada New-House Prices Flat in August

By Robb M. Stewart

OTTAWA--New-house prices in Canada held steady in August, a further sign of a property market in limbo despite recent cuts in interest rates.

Statistics Canada's new-house-price index was unchanged from the month before, after edging up 0.2% in July.

From a year earlier, prices for the month also were flat, the data agency said Monday.

Canada's housing market has remained muted in recent months despite the central bank having cut its policy interest rate three times in as many meetings. Economists say the market is poised for recovery but consumers may be waiting for rates to be lowered further.

Benchmark prices for existing homes also were unchanged in August but were down 3.9% from a year earlier, or 4.2% lower on a seasonally adjusted basis, recent data from the Canadian Real Estate Association showed. National resales rose 1.3% from July, but remained below historical averages.

Statistics Canada said prices were unchanged for the month in 13 of the 27 metropolitan areas surveyed, increased in eight and declined in the remainder.

The largest month-over-month decline was recorded in Calgary, Alberta, the first fall for the city since January, the agency said. New-home prices increased the most for August in Regina, Saskatchewan, and in Oshawa, Ontario, with builders reporting improving market conditions as the reason for the rise.

The new-house-price data from Statistics Canada covers single-dwelling, semi-detached and row houses. It doesn't incorporate prices for newly built condominium units.

Write to Robb M. Stewart at robb.stewart@wsj.com

(END) Dow Jones Newswires

September 23, 2024 09:03 ET (13:03 GMT)

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