I am pleased to be able to share my 2023 February Regina Real Estate Market Report!
February 2023 Monthly Housing Market Trends Report
How Does This Compare to National Data?
New home prices in Canada dropped by 0.2 per cent month over month in January, according to Statistics Canada data released Wednesday.
In its latest New Housing Index report, StatCan said higher mortgage rates continued to put downward pressure on new house prices.
“Borrowing costs rose again in January, as the Bank of Canada increased the policy interest rate an additional 25 basis points, bringing it to 4.5%,” StatCan said.
StatCan noted the Canada Mortgage and Housing Corporation (CMHC) reported that 18.7 per cent more single-family homes had been completed but not sold in December 2022 compared with the same month in 2021.
In addition, the price of softwood lumber went down again in January, declining a total of 61.2 per cent since the high in March 2022, reducing builders’ construction costs.
These changes were felt by builders who reported deteriorating market conditions and decreased construction costs as the reasons for the decline in new home prices, StatCan said.
It also reported that Winnipeg (-1.3 per cent) recorded the largest decrease in new home prices last month, followed by Victoria (-1.1 per cent) and Kitchener-Cambridge-Waterloo, Ont. (-0.9 per cent).
In January, the Canadian Real Estate Association (CREA) predicted house prices could fall almost six per cent this year from 2022, which ended in a sluggish market as sellers and buyers sat on the sidelines.
The association’s forecast amounts to 495,858 properties changing hands in 2023 and is based on sales “more or less” stabilizing since the summer, “suggesting the downward adjustment to sales activity from rising interest rates and high uncertainty may be in the rear-view mirror.”
The same factors are also expected to put a damper on the average home price, which CREA said will reach $662,103 in 2023.
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