New Home prices in Calgary didn’t move much on a monthly basis in July acc0rding to the Statistics Canada report out today. Prices were up 0.1% in Calgary with some builders reporting that increased material and labour costs were the main reason for higher prices. Year-over-year, prices were up +2.3% in Calgary.
Prices were unchanged in 6 of the 21 metropolitan regions surveyed in July. The largest monthly price advance in July occurred in the metropolitan region of St. John’s (+0.6%). The largest monthly decrease was in Windsor with prices falling -0.3%.
The largest year-over-year increases in contractors’ selling prices occurred in Regina (+4.7%), Toronto and Oshawa (+4.6%), and Winnipeg (+4.4%).
Among the 21 metropolitan regions surveyed, 4 posted 12-month price declines in July. The largest decrease was in Victoria (-2.9%).
Home prices are flat, but flat doesn’t necessarily mean unhealthy. There were a host of reasons why housing prices more than doubled during the boom, but it’s hard to argue prices didn’t overshoot. The best way for the market to re-adjust is a sustained period of relatively flatprices. But flat won’t last forever.
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.