Contemporary homes cost drops in Canada

The cost of contemporary homes has dropped in Canada, with Calgary seeing the biggest reductions.

The price of a newly built house in Calgary fell in June by 0.3%, it was announced on Thursday. According to the Calgary Herald, the fall in price in the region was “the largest monthly decline in the country”, despite a nationwide increase in the New Housing Price Index of 2.1% since 2010.

The reduction in the Calgary area has been attributed to industry efforts to generate sales by lowering prices. “Competition from the resale market has impacted demand for new homes,” comments the Canada Mortgage and Housing Corporation. With sales of newly built contemporary homes potentially suffering, the 0.3% reduction is hoped to increase interest from buyers and overseas investors.

Despite worries that the US economic downturn may impact sales, however, there is still overall confidence in the Canadian housing market. A study from the Real Property Association of Canada, revealed yesterday in the Canadian Real Estate Magazine, has found that the country’s property market is still growing, and has been for the last eight quarters.

“The market is largely viewed as stable and attractive, which bodes well for future investment and development,” says the report.