Home prices flat for first time in 6 years

Marco sent in this link to todays Globe & Mail. Monthly house prices are flat in Canada for the first time in six years, possibly signaling a slow-down in our once hot real estate market. The largest monthly drop was in Alberta, with a slide of 0.9 percent, the biggest drop in eleven years. The largest monthly increase was seen in Saskatoon followed by Regina and London. Across Canada it added up to flat prices.

Home prices didn't budge between November and December, Statistics Canada said Thursday. It was the first time since June, 2000, that its monthly new housing price index was unchanged.

That easing will help keep inflation under wraps, an economist said.

“The rise in new house prices that feeds directly into the consumer price index for shelter, is expected to put less upward pressure on core services inflation in the coming months,” said Ted Carmichael, chief economist for J.P. Morgan Securities Canada.

As regular readers here know, the REBGV benchmark price in Vancouver has actually been dropping each month since September 2006, losing almost $20,000 in that time. Prices in Vancouver are still very high by historical standards, so it remains to be seen how far prices will correct or if spring will bring more buyers with more credit.