New home prices fall 3.1 per cent in past year…experts say new-home sales tend to lag resale because big cities pick up first…numbers consistent with a recovery…buyers first deplete inventory of used homes in city before drifting to suburbs for something new…
(Source: The Globe and Mail)
Anyone keeping an eye on new home prices may be suspicious of all this talk of a recovery in the Canadian real estate sector. Prices for new houses have fallen 3.1 per cent in the past year, while resale values have increased by per cent.
Read the the full article by Steve Ladurantaye, “Real estate: Why new house prices lag old house prices” in the Globe and Mail (Oct. 16, 2009).