Canada new home prices fall for second straight month

Mon Jan 12, 2009 8:52am EST
 
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OTTAWA (Reuters) - Prices for new housing in Canada fell for the second straight month in November due to flat or lower prices in the western provinces where real estate markets were previously booming, Statistics Canada said on Monday.

Prices fell 0.3 percent from October, in line with market expectations. That knocked down the year-on-year price increase to 0.7 percent from 1.5 percent in the previous month -- the lowest since August 1999.

Every major city west of Winnipeg, Manitoba posted flat or falling prices in the month.

Compared with a year earlier, Statscan reported price declines in Calgary, Edmonton, Vancouver and Victoria as those markets cooled from their previous sizzling pace of price growth. Prices in central and eastern Canada rose in the same period.

While the housing market in Canada is softening alongside the overall economy, economists have ruled out a U.S-style meltdown largely because of the country's more conservative mortgage lending practices.

LINK * Statistics Canada report

here

(Reporting by Louise Egan)

 
<p>A construction worker swings his hammer at a new home development in Ottawa in this July 9, 2008 file photo. Prices for new housing in Canada fell for the second straight month in November due to flat or lower prices in the western provinces where real estate markets were previously booming, Statistics Canada said on Monday. REUTERS/Chris Wattie</p>