Prices for newly constructed homes fell in both the Victoria and Vancouver metropolitan regions* in 2011, bucking a trend of rising prices across the rest of Canada.
The Statistics Canada New Housing Price Index tracks changes over time in the selling prices of new homes that are comparable in most details, including square footage, number of beds and baths, and location. The index covers single family detached homes, duplexes, triplexes and townhomes, but not condominiums.
New home prices in 2011 slipped by 0.3 per cent in Vancouver, while Victoria saw the country's largest decline of 1.6 per cent.
The dropping prices in Victoria and Vancouver can be attributed to developers' negotiating lower prices on homes over the $525,000 magic number, where the HST adds more to the cost of the home than the old PST/GST system did. Many home buyers are holding back until the system changes back, so builders are absorbing some costs to make their prices more attractive.
Click here to calculate the difference between HST and GST/PST on the cost of a new home.
Hamilton and St. John's were the only other metropolitan areas to see new house prices drop.
Meanwhile Toronto and Oshawa led the country with a 6.3 per cent rise in the New Housing Price Index. Regina and Winnipeg also saw significant rises.
Click here for interactive detailed charts.
* Statistics Canada defines the Vancouver Metropolitan Region as comprising the region from Langley and Maple Ridge to Lions Bay.
Prices for newly constructed homes fell in both the Victoria and Vancouver metropolitan regions* in 2011, bucking a trend of rising prices across the rest of Canada.
* Statistics Canada defines the Vancouver Metropolitan Region as comprising the region from Langley and Maple Ridge to Lions Bay.
