Housing prices didn't budge for the first time in more than six years, Statistics Canada reported Thursday, a sign the real-estate market is finally seeing a slowdown.
The monthly new housing price index was unchanged from November to December, marking the first time since June 2000 that prices did not advance at the national level, the government agency said.
Contractors' selling prices climbed 10.7 per cent higher than a year ago, with price increases in nine of the 21 metropolitan areas surveyed, according to Statistics Canada.
Saskatoon posted the largest monthly increase at 3.0 per cent, followed by Regina at 1.9 per cent and London at 0.7 per cent.
Costs for construction materials were contributing factors, in particular, electrical, drywall, roofing and windows, plus labour rates.
In Saskatoon, increased lot values affected by city levies were also cited.
Increases were also observed in Winnipeg, Hamilton, Kitchener, Edmonton, St. John's and Toronto and Oshawa.
Land prices rose in four of the nine metropolitan areas showing increases.
Six metropolitan areas posted no changes while Calgary and Victoria showed decreases.
Despite showing a monthly drop, Calgary posted the largest 12-month increase once again, with 42.4 per cent, followed closely by Edmonton at 41.5 per cent. Saskatoon at 16.1 per cent, Regina at 12.3 per cent, Vancouver at 8.2 per cent and Winnipeg at 7.9 per cent.
"Toronto was more typical of the rest of Canada, prices there up 3.4 per cent," CTV's Business Editor Linda Sims reported on Newsnet.
"Interesting that Windsor, where we are waiting news of job cuts out of Chrysler was the only city where we saw a drop in housing prices -- housing prices there are down by 1.2 per cent year over year."
The Statistics Canada update was released the same day that the Canada Mortgage and Housing Corporation repeated its forecast that housing starts will ease this year after record growth in 2006.
While housing starts are expected to slow in 2007, the CHMC reported they climbed to a seasonally adjusted annual rate of 249,300 units in January from 212,600 in December.
"Historically low mortgage rates, solid employment and income growth, and a high level of consumer confidence continue to support residential construction activity," said Bob Dugan, chief economist at CMHC's Market Analysis Centre.
"The volatile multiples segment bounced back in January, accounting for most of the growth this month. Although housing starts are expected to ease to 209,500 units in 2007, they will remain above the 200,000 mark for the sixth consecutive year."
Urban starts jumped 19.2 per cent to 216,300 units.
"It looks as if a lot of the action is in the condo market," Sims reported, noting that urban multiple starts surged 31.4 per cent to 124,300 units.
Meanwhile, urban singles were up 5.9 per cent to 92,000 but they eased in Quebec and British Columbia.
Rural starts in January were estimated at an annual rate of 33,000 units.
Compared to January 2006, actual starts in both rural and urban areas increased an estimated 12.2 per cent last month, while starts in urban areas only were up an estimated 11.9 per cent.
Actual singles in urban areas were 14.3 per cent lower in January 2007 than they were a year earlier, with all regions showing a decline. Actual urban multiple starts last month were up 37.7 per cent over January 2006.
