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Canadian new home prices fall for the first time in nearly a decade

New homes became slightly more affordable in parts of Canada (Getty)

For the first time in more than 9 years — new home prices fell compared to the previous year.

Data from Statistics Canada show the national average fell 0.1 per cent in January. Higher mortgage rates and tighter regulations are likely contributors to the slowdown.

With a three per cent drop — prices fell the most in Regina.

New home prices in Toronto were down 1.5 per cent. Year-over-year price growth started to slow in April 2018 after the introduction of the Ontario Fair Housing Plan a year earlier.

Alberta’s biggest markets also cooled. Prices in Calgary fell 1.1 per cent and Edmonton fell 0.5 per cent.

Vancouver went from a 9.1 per cent jump at its peak in 2018 to a 0.3 per cent drop this year. The dip coincides with B.C’s housing plan aimed to make homes more affordable, which included a 20 per cent foreign buyers tax.

Those four markets combined represent 60 per cent of the weight of the national index.

Meanwhile, prices in some of Canada’s more affordable markets have gone up. Ottawa is up 5.2 per cent and London is up 3.2 per cent. Those two markets have led the country for eight consecutive months.

The national average price of a new home also fell in January compared to December — the first monthly drop since February 2018. The decline follows five straight months of unchanged prices.

At 0.3 per cent — the largest monthly price drop occurred in Saskatoon.

Home prices fell in Canada's biggest markets month-over-month (Statistics Canada)

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