After months of consistent decline, the national New Housing Price Index is showing signs of a pivot. While June saw a marginal 0.1 per cent dip, the pace of decline is slowing significantly compared to April’s 0.5 per cent drop. Interestingly, builders in Ontario, Alberta, and Manitoba are bucking the national trend, actually increasing prices for new developments even as Vancouver and Toronto continue to exert downward pressure on the market.
Economists point to a tug-of-war between major urban centers—still dealing with oversupply—and the rest of Canada, which is seeing signs of recovery. With construction costs remaining elevated and many young Canadians sidelined by affordability, the market remains in a state of stagnation. However, institutional investors are increasingly stepping in, buying unsold condo inventory in bulk. For a deeper look at these shifting dynamics and what it means for your next move, visit the original report at BNN Bloomberg.
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