Amid trade conflict, new home prices weaken

Prices for new residential construction retreated for a third straight month in June, Statistics Canada said in a report on Wednesday.

The national statistical agency reported that its latest reading for the New Housing Price Index saw prices down by 0.2% on a countrywide basis in the month.

Prices were down for 12 of the 27 metropolitan areas tracked by the index in June, led by a 0.9% drop in Sudbury, Ont., and a 0.8% decline in Calgary.

“Builders reported market slowdowns where buyers were able to negotiate lower prices,” Statistics Canada noted.

Elsewhere, prices were flat in 10 markets, and five cities saw price gains in June, led by Charlottetown, up 1.4%, and Victoria, up 0.7%.

On a year-over-year basis, new home prices were down by 0.8% in June.

Prices were stable in the first quarter but have been declining in the past three months as the effects of the U.S. trade war emerged, Statistics Canada reported.

For instance, the agency noted that prices were down by 2.3% on an annual basis in London, Ont., and down 1.9% in Edmonton.

“In early 2025, home prices in these [markets] trended downward due to uncertainties related to tariffs imposed on Canada by the U.S. and tariff countermeasures imposed on the U.S. by Canada,” the report said.

In London, resale prices are also down 4.5% so far this year, the statistical agency reported, adding that the unemployment rate has risen in the city this year, and is above the national average.

James Langton

James is a senior reporter for Advisor.ca and its sister publication, Investment Executive. He has been reporting on regulation, securities law, industry news and more since 1994.