New home prices

New homes prices rose in Metro Vancouver in May, the first time the region has registered an increase since April 2008, Statistics Canada announced Friday.

The prices Metro-area contractors get for their units rose just 0.4 per cent from April (and prices were down 8.3 per cent from May 2008), but that increase bucked the national trend.

New homes prices across Canada fell for the eighth-straight month.

The federal agency said prices decreased 0.1 per cent during the month, following a 0.6-per-cent decline in April.
Prices had previously dropped by 0.5 per cent in March and 0.7 per cent in February across the country.

Prices declined the most in Saskatoon, falling 1.2 per cent, and Hamilton, with a 1.1 per cent drop. Edmonton saw a 0.9-per-cent decrease.

“In Hamilton, several builders offered free upgrades, incentives and cash bonuses in order to increase sales during a period of less favourable market conditions,” Statistics Canada said. “In Saskatoon, a number of builders reported reduced material and labour costs while other builders have lowered their prices to be more competitive and to encourage sales.”

For the year, new home prices were down 3.1 per cent in May, compared to March’s 2.4-per-cent decline.

("Metro Vancouver new home prices rise for first time since April 2008 " Financial Post/Vancouver Sun)