It’s been 30 years since the price of a newly built home has fallen as much as it did in April.
We’ve been tracking the slowdown in the residential market for some time now with excess inventory putting pressure on prices. New home builders got ahead of demand while listings of existing properties moved up sharply. The end result is that prices are falling as supply exceeds demand.
StatsCan has just released its April figures on the cost of building a new home and it turns out Regina posted the biggest decline in the country. In fact, the drop of 1.3 percent for the month was the most significant decline in the Regina area since 1984.
Interestingly the drop in Saskatoon was marginal but it was Regina that seemed to be setting the trend as the April decline accounted for virtually all of the reduction we’ve seen in the past year. Builders attributed the drop to promotional pricing….in other words they were cutting their asking price in a bid to spark traffic.