Vancouver and BC’s New Home Prices Keep Dropping

(May 19, 2015 )

Greater Vancouver, the Fraser Valley and BC’s resale home markets may be through the roof, but the prices of newly built residences in the province and its two major cities continued their year-over-year decline in March, according to Statistics Canada.

The national statistics organization reported May 14 that both BC as a whole and Vancouver saw 0.5 per cent year-over-year declines in the price of a new home. Victoria posted Canada’s second-largest decline at 1.3 per cent. Vancouver and Victoria were two of only seven metropolitan regions to report annual drops in new home prices in January, out of a total of 21 areas surveyed. The index combines both home and land values. As in previous months, the decreases in value were entirely attributed to developers reporting a drop in negotiated home prices, with land values remaining unchanged for several months. Of all the metropolitan areas surveyed, Hamilton, Ontario recorded the largest annual increase in March, with prices up 3.2 per cent compared with the same month last year. Of the provinces, Ontario posted the biggest new housing price index rise, at 2 per cent. Across Canada, March’s new housing price index increased 1.2 per cent year over year, and remained flat compared with the previous month – as did BC, Vancouver and Victoria