- Prior was -0.3%
The latest reading suggests that price pressures in the new home market remain subdued, although the pace of declines has eased. Elevated borrowing costs, affordability challenges, and softer housing demand continue to weigh on builders’ pricing power, despite the gradual stabilization seen in recent months.
While the smaller monthly decline points to some resilience in the sector, the data indicate that Canada’s new home market remains under pressure as developers navigate a cautious demand environment and buyers continue to adjust to higher financing costs.
For background, the New Housing Price Index (NHPI) is a monthly series that measures changes over time in the builders’ selling prices of new residential houses, where detailed specifications pertaining to each house remain the same between two consecutive months. The survey covers the following dwelling types: new single homes, semi-detached homes and townhomes (row or garden homes). The survey also collects builders’ estimates of the current value (evaluated at market price) of the land. These estimates are independently indexed to provide the published series for land. The current value of the structure is also independently indexed and is presented as the house series.
This article was written by Giuseppe Dellamotta at investinglive.com.