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New home prices dip in December

New home prices edged down in December, reversing the slight increase seen in November, according to new data from Statistics Canada.

New home Prices December 2024

The national New Housing Price Index (NHPI) dropped by 0.1% from November to December, with price declines recorded in seven of the census metropolitan areas (CMAs) tracked by StatCan.

Greater Sudbury saw the biggest month-over-month drop in December at -0.7%, followed by Calgary and Toronto, both down by -0.4%. These price declines were driven by builders offering more incentives and negotiating lower prices in these markets, StatCan said.

The largest monthly gain was in the combined region of Saint John, Fredericton, and Moncton (+0.6%).

Since 2019, new home prices have steadily risen, with a sharp spike in 2021 and 2022. Since mid-2022, growth has slowed, and prices have largely leveled off through December 2024.

New Housing Price Index

New Housing Price Index
Source: Statistics Canada

New home prices up slightly year-over-year

On a year-over-year basis, however, the index saw a modest increase of 0.1%. Calgary and Québec stood out with the highest annual price jumps, up 3.9% and 3.8%, respectively.

In contrast, areas like Kitchener–Cambridge–Waterloo and Ottawa saw the largest year-over-year price declines, down 1.4% each, as more unsold new homes hit the market and put downward pressure on prices.

The NHPI tracks changes in the selling prices of new residential homes, including single-family homes, semi-detached homes, and townhouses. It reflects the prices agreed upon between builders and buyers, excluding taxes like GST and HST, and is not seasonally adjusted.

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Last modified: January 24, 2025

Steve Huebl is a graduate of Ryerson University's School of Journalism and has been with Canadian Mortgage Trends and reporting on the mortgage industry since 2009. His past work experience includes The Toronto Star, The Calgary Herald, the Sarnia Observer and Canadian Economic Press. Born and raised in Toronto, he now calls Montreal home.

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