June Canadian New House Price Index Edges Up 0.1% as Expected
Canada Total Change y-o-y: 3.5%
Canada Total Change m-o-m: 0.1%
House Only Change m-o-m: 0.1%
Land Only Change m-o-m: 0.2%
Y-o-y contactors selling prices slowed to a 3.5% increase in June vs the 4.1% y-o-y increase recorded in May, for the slowest growth rate since March 2002 stalled by soft housing markets in Western Canada. The largest y-o-y increase was in Regina up 28.5% led by labour shortages and material costs. While St. John posted a 22.2% increase y-o-y for a faster rate of growth than Saskatoon (up 16.3%) for the first time since Dec 2005 on labour and land costs.
M-o-m Canadian New House Pice Index edged up 0.1% compared with 0% (unchanged) last month and in line with consensus estimates. The slowdown was led by Saskatoon down 2.8% compared to a 0.5% increase in May and continuing declines in home prices in Victoria, BC down 0.1% m-o-m, followed by Vancouver, BC which has slowed since last month, up 1.8% m-o-m in June compared to the 2.7% increase in May.
Contractor selling prices recorded strong increases in St. John up 2.8% m-o-m, Winnipeg up 1.1% m-o-m.
Land Only in June was up 0.2% m-o-m, a slight increase from the 0.1% gain recorded in May but continueing a slower growth trend observed over the past 2 years according to a Statistics Canada analyst.