New home prices down slightly to start the year
The tapering in new home prices began last summer as higher borrowing costs started to weigh on the housing market
By Rob Roach, ATB Economics 25 April 2023 1 min read
The average price of a newly built home* in Alberta slipped by 0.4% in the first quarter of 2023 compared to the fourth quarter of 2022.
It was the same story nationally, with the quarterly average down by 0.5% over the first three months of the year.
The average price in Calgary edged up ever so slightly in the first quarter (+0.2%) while it fell in Edmonton (-1.0%).
The tapering in new home prices began last summer as higher borrowing costs started to weigh on the housing market.
Prior to this, prices had been on a tear with the national New Housing Price Index up by 20.5% in the first quarter of 2023 compared to the first quarter of 2020.
In Alberta, the index was 20.3% higher over the same period with Calgary posting a 28.6% increase compared to a more modest jump of 11.3% in Edmonton.
Prices rose in every province between Q1 2020 and Q1 2023 with Manitoba posting the largest increase at 33.1% and Newfoundland and Labrador the lowest at 9.1%.
As a result, the average price of a new home in both Canada and Alberta, although softening, remains elevated compared to pre-pandemic levels.
*The New Housing Price Index (NHPI) measures changes over time in the selling prices of new residential houses.
Answer to the previous trivia question: The value of “the best foregone alternative that was not chosen” is known as opportunity cost.
Today’s trivia question: What is the square footage of a typical “tiny” home?