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?