New home prices in Calgary and Edmonton

THINK OUTSIDE THE BOX: Today’s new housing price numbers confirm that even in the face of an economic downturn, Albertans should still have confidence in our province’s housing market.

Prices of new homes in Calgary displayed the largest monthly decrease among any city in the country, according to new numbers from Statistics Canada. With that said, the decline has been minimal.

Released this morning, the data reveals the index of new homes in Calgary reached 110.8 (based on an index where the average price of a new house in 2007 is set equal to 100), almost half a per cent lower than in February.  According to Statistics Canada, “builders cited current market conditions and promotional prices to attract sales as the main reasons for the decrease.”

Despite the monthly decrease, new home prices in Calgary remain about three per cent higher than March of last year. Statistics Canada notes that this was the smallest price increase in Calgary since November 2012.

Edmonton’s index in March stood virtually unchanged at 91.5 in March, and about 0.7 per cent higher than a year ago. Over the last several years, new home prices in Alberta’s capital city have remained constant.

As a whole, Alberta’s new housing price index stayed unchanged from February (112.4). Prices across the province are about 1.2 per cent higher than a year ago.

Today’s new housing price numbers confirm that even in the face of an economic downturn, Albertans should still have confidence in our province’s housing market. Even though new home prices have gone down in Calgary, the decline has been small. Looking ahead, it’s still apparent that homebuilders see Alberta as a profitable place to conduct business.

Nick Ford   Economist        May 14, 2015

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