According to Statistics Canada, new home prices rose 0.1 per cent nationally in July, after a 0.2 per cent increase in June, representing a year-over-year increase of 2.3 per cent. Of all Canadian cities, Regina has increased the most on an annual basis, up 4.7 per cent. But it has been gains in Toronto that really pushed up the national index, which increased 4.6 per cent over July 2011.
Home prices in Calgary and Edmonton didn’t move much on a monthly basis in July, up 0.1 per cent in Calgary, down 0.1 per cent in Edmonton. Annually, prices were up 2.3 per cent in Calgary and 0.8 per cent in Edmonton.
New home and resale prices have been relatively flat in Alberta over the past couple of years, even as wages and employment increased at a healthy clip. The federal government has returned mortgage insurance standards to where they stood in 2004, which will force households to be more prudent. That, in turn, will force some delays, but, clearly, the Alberta market, after an initial drop and four years of flat growth, is close to burning off most of the excess.
Let me know if I can be of any help - James
Daily Economic Comment - ATB