New home prices cooler to end the year
The average price of a new home in Alberta edged down over the second half of 2022
By Rob Roach, ATB Economics 26 January 2023 1 min read
After rising during the first half of 2022, new home prices in Alberta edged down over the second half of the year.
The monthly new home price index for Alberta increased at an average rate of 1.7% over the first six months of 2022 compared to an average decrease of 0.1% from July to December.
While there are many factors affecting the price of new homes, rising borrowing rates are likely a key reason for the downward trend.
A similar pattern is evident in both of Alberta’s two largest metro areas and in the country as a whole.
In Calgary, the index increased by an average of 2.2% over the first half of 2022 compared to -0.1% over the second half.
In Edmonton, the index rose by 1.2% per month before falling by an average of 0.2% over the second half of the year.
Nationally, new home prices went up by 0.7% per month during the first half of 2022 then fell by 0.1% per month over the second half.
Answer to the previous trivia question: The Federal Reserve System of the United States was created by an act of Congress in 1913.
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