While the price of all housing sold in Greater Vancouver rose considerably through 2014, the cost of a brand new home actually dipped slightly year-over-year to November.
Statistics Canada’s New Housing Price Index for November showed a drop of 0.6% compared with a year ago. Between October and November, prices dipped 0.2%. This was the first monthly drop in the city since July. Builders say the decrease is due to lower negotiated selling prices.
By contrast, the average cost of a new home across Canada increased 1.7% year-over-year to November. This was mostly due to the cost of the housing itself, which grew 2%, compared with a 1% increase in the cost of land.
Charlottetown saw the country’s biggest decline in the cost of new homes over the 12-month period, with prices falling 1.9%. Prices fell 0.2% from October 2014, continuing a trend of flat or falling prices in the city that began in August 2013.
The biggest yearly jump was in Calgary, which saw the cost of new homes grow by 6.5% year-over-year. Between October and November, prices grew 0.3%, which builders attribute to higher material and labour costs, higher land prices and overall market conditions.
The index measures the selling price of new single dwellings, demi-detached homes and row houses and does not consider condo selling prices.
