New home prices in Canada drop to 14-year low

New home prices in Canada fell to their lowest levels in 14 years in October, as affordability challenges and rising inventories slowed demand, according to Statistics Canada.

The New Housing Price Index (NHPI) dropped 0.4% month-over-month, the steepest decline since 2009. On an annual basis, the index fell 0.2%. Toronto and Vancouver led the downturn, with prices dropping 1.2% and 0.6%, respectively, as builders reported weaker market conditions.

Rising inventories added pressure, particularly in Vancouver, where unsold single-family homes surged nearly 49% year-over-year, according to the Canada Mortgage and Housing Corporation. Meanwhile, Winnipeg bucked the trend, posting a 0.4% price increase due to its relative affordability.

Of Canada’s 27 census metropolitan areas, prices declined in nine regions, rose in seven, and remained stable in 11. While markets like Calgary showed resilience, broader affordability and inventory pressures suggest ongoing challenges in the housing sector.