Unabsorbed New Construction – Prices Up $75K Over 2012

I was just reading CMHC’s latest housing market statistics report, covering new housing starts across Canada, broken down by Province and municipality, through April 2013.  Overall the number of starts is down slightly from 2012, on pace with 2011.  But there was one statistical category that really stood out to me:  in the “unabsorbed single and semi-detached” category for Ottawa, the average price of these units is running approximately $75,000 higher than 2012.  The 2012 average hovered around $500,000 and in 2013 it is around $575,000.  Re-sale homes look to be an even better deal than ever at this point.  Unless it is the case that only new homes in higher price brackets are not selling, and less expensive ones are?  Unfortunately, no price information for completed sales (absorbed) new construction are given in the report.  If the latter is the case, then I would think we’d see some builder price reductions later in the year to move some of this inventory.

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