Canadian housing prices still cooling

New housing prices continued to cool in August, posting no increase from July and leaving them just 2.3 per cent higher than a year earlier, down from 2.7 per cent a month earlier, Statistics Canada reported Friday.

Regionally, prices rose at the fastest pace in St. John’s, N.L., with an annual price increase of 23.7 per cent, with builders there saying material and labour costs, as well as higher land development costs, contributed to the increases, the federal agency said.

Regina, which registered no monthly price change in August, had the second highest annual increase at 23.1 per cent, but down from its record increase of 34 per cent posted in April.

‘The housing market in Canada continues to cool as the housing cycle winds down. As a result, we expect housing to continue its drag on GDP in the coming quarters in conjunction with other negative contributors,’ said a TD analyst Friday.

In Saskatoon, prices fell 3.1 per cent in the month, and though still eight per cent higher than a year earlier, confirming a decelerating trend there, Statistics Canada said.

In Edmonton prices were down 5.7 per cent from a year, a 23-year low, while prices in Calgary were down 1.1 per cent, the weakest performance since 1991.

On the West Coast, Vancouver prices were up 1.5 per cent over the previous 12 months, while in Victoria prices were off 0.3 per cent from a year earlier.

In Toronto, prices were 3.4 per cent higher than a year earlier, while in Ottawa they were up 4.1 per cent, Quebec City saw a 6.1 per cent rise and Montreal was 5.2 per cent higher.

“The housing market in Canada continues to cool as the housing cycle winds down,” noted TD Securities analyst Ian Pollick. “As a result, we expect housing to continue its drag on GDP in the coming quarters in conjunction with other negative contributors.”