Brian Morton
Sun
Vancouver saw a 1.1-per-cent decline in prices for new homes in March from the previous month and a 7.8-per-cent decline since March 2008, Statistics Canada reported Monday. Photograph by: Glenn Baglo, Vancouver Sun files
Vancouver saw a 1.1-per-cent decline in prices for new homes in March from the previous month and a 7.8-per-cent decline since March 2008, Statistics Canada reported Monday.
The declines were far greater than the national average, which saw prices for new homes fall 0.5 per cent for the month and 2.4 per cent in the year.
However, Greater Vancouver Home Builders’ Association [GVHBA] chief executive officer Peter Simpson said in an interview that the survey results are not surprising and that things are starting to turn around.
“Prices went up pretty heavily here, so to drop [eight per cent] isn’t surprising. And builders have standing inventory, so it makes sense to reduce prices, sell homes and get them off the books. It’s creating some pretty sweet deals for people looking for a home.”
Simpson also said that a lot of builders’ standing inventory has been “reduced and eliminated,” and that many are already starting to plan their next projects.
According to the survey, the drop in new home prices was led by declines in Western Canada, with the biggest declines in Calgary and Edmonton.
“In Vancouver and Victoria, builders reported lower prices due to competition and slow market conditions.” the report stated.
“In Calgary and Edmonton, declines were attributed to lower material and labour costs and lower lot prices from developers.”
Victoria prices dropped 0.9 per cent from February to March and 6.6 per cent since March 2008. Prices also declined in St. Catharines–Niagara, Ont., down 0.9 per cent, Saskatoon, off -0.7 per cent, Charlottetown, down 0.4 per cent, Toronto, down 0.3 per cent and Hamilton, Ont., off 0.2 per cent.
Meanwhile, prices rose in St. John’s, N.L., which posted a 0.4 per cent increased. Montreal prices were up 0.3 per cent and Quebec gained 0.1 per cent.
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