Persistent uncertainty in the Alberta economy continues to impact the homebuilding industry.
The good news for consumers is that prices of new homes are falling. Not so good news, though, for homebuilders as they struggle with a lower demand environment.
According to Statistics Canada data, the average price of a new home in Alberta was down by 1.7 per cent in September compared to a year earlier. This was the 15th consecutive drop in the year-over-year price in the province, according to ATB Financial’s Economics & Research Team in its daily economic update The Owl.
“Compared to the most recent peak in the average price (March 2015), the price in September was off by 3.1 per cent. As an example, this works out to an $18,500 discount on a new home that was selling for $500,000 four years ago. While this is helpful for new home buyers, it makes life more difficult for builders and is a sign of a sluggish economy,” says ATB.
Year-over-year new home prices were down by 2.2 per cent in Calgary and by 1.2 per cent in Edmonton. The average price was down by 0.1 per cent over the same period at the national level.
Vancouver was tied with Calgary for the largest year-over-year decline in prices, each with a 2.2 per cent drop, ATB reported.
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