Across Canada, contractors’ selling prices rose 0.5% in September following a 0.1% increase in August. This was the largest month-over-month increase since January 2008 (+0.6%).
Between August and September prices increased 0.6% in Calgary, the 3rd highest increase in Canada. Edmonton recorded a -0.1% monthly decline.
Statistics Canada reports:
In Calgary, some builders increased their prices either due to higher labour costs or to moving to new phases with higher development costs. In addition, several builders have slowly raised their prices because of an improved new housing market.
Year over year, the New Housing Price Index was down 2.7% in September, following a 3.1% decline in August. Western Canada continued to have the largest declines. While Calgary had the 3rd high increase month-over-month, it also had the 3rd largest decrease year-over-year.
- Edmonton (-11.4%)
- Victoria (-10.4%)
- Calgary (-6.4%)
- Vancouver (-6.4%)
- Saskatoon (-5.1%).
Source: Statistics Canada
Source: Statistics Canada
Source: Statistics Canada (click to enlarge)
Noteworthy that a major player has spoken up:
Mortgage Lender (ING) warns of housing bubble
Peter Aceto (Pres & CEO of ING) was also on BNN earlier this week: view clip
A few weeks ago, Mark Carney (BoC) stated: “We expect, and we have confidence in, prudence from Canadians. We remind people that borrowing is for the period you are going to borrow, not just for the moment you take out the loan.” (Source)
Peter, why are you being such a worry-wart ? Don’t you know that we are going to experience wonderful growth next year across most of Canada?
http://www.theglobeandmail.com/report-on-business/olympics-infrastructure-spending-to-spur-recovery/article1361209/
See? The Conference Board of Canada said so!
The Olympics and forestry are going to save BC. No, seriously, the Olympics.
Oil prices and natural gas prices are going to go back to 2007 prices to save Alberta.
The potash industry is going to do a 180 and save Saskatchewan.
Government spending is going to save Ontario, Nova Scotia, and PEI.
Newfoundland, sorry, you’re screwed.