For the second consecutive month, new home prices in the Calgary CMA recorded a -0.4% decline according to Statistics Canada. Some builders reduced their prices to stimulate sales, while others reported lower negotiated selling prices in April.
The last time prices fell in back-to-back months was in June/July of 2011.
Year-over-year, Calgary’s New Home Price Index (NHPI) was up 1.8% – the smallest annual gain going back to June 2012.
Along with prices, builders have eased back on construction as well. According to CMHC, the number of single-detached starts in the Calgary CMA in April decreased 41% to 373 units from 630 in the previous year.
“Though the flow of new listings has eased in recent months, supply in the existing home market remains elevated, offering buyers more choice outside of the new home market.
Coupled with moderating economic conditions, the demand for new single-detached homes has reduced. There have been 1,562 single detached starts year-to-date, down 25 per cent from 2,090 units in the first four months of the previous year.”
Preliminary data for May shows that Calgary single detached starts were down -51% with only 299 homes breaking ground compared to 606 the year before.
The NHPI survey covers the following dwelling types: single dwellings, semi-detached and row houses. Apartments are not part of the index.