By Mario Toneguzzi
CALGARY – New house prices in the Calgary region remained stable in November.
In releasing its New Housing Price Index Wednesday, Statistics Canada said new home prices in the Calgary census metropolitan area did not change on a monthly basis but rose 0.8 per cent from a year ago. David Hooge, president of the Canadian Home Builders’ Association-Calgary Region, said we can expect the current trend to continue into next year “going hand in hand with the modest increases predicted in sales unless the industry is faced with building code or regulation changes that impact the cost of construction.”
Richard Cho, senior market analyst in Calgary for Canada Mortgage and Housing Corp., said the house only component of the NHPI rose by 0.3 per cent in the Calgary region from last year while the land only component was up 1.6 per cent.”New home prices have only seen a modest increase since the previous year,” said Cho. “A majority of the gains can be attributed to the land component which is up 1.6 per cent from a year earlier. The house component on the other hand has started to moderate in the fourth quarter. Fewer new home starts coupled with an elevated unemployment rate has taken some pressure off material costs and wages.”
Cho said new home prices should remain relatively flat in the early months of this year.”Given the level of supply in the competing resale market, consumers will be sensitive to any adjustments to new home prices,” he said. “We are expecting stronger price movements in the latter half of the year when labour market conditions further improve and active listings in the competing resale market moves to more balanced levels.”