RTTNews - Canadian new home prices selling prices decreased 0.1% in May following a 0.6% decline in April, according to data released Friday morning by Statistics Canada.

Between April and May, contractors selling prices declined the most in Saskatoon (-1.2%) followed by Hamilton (-1.1%) and Edmonton (-0.9%). In Saskatoon, a number of builders reported reduced material and labor costs while other builders have lowered their prices to be more competitive and to encourage sales.

In Hamilton, several builders offered free upgrades, incentives and cash bonuses in order to increase sales during a period of less favorable market conditions.

Prices declined 0.3% in Toronto and Oshawa as well as in Victoria. In Toronto and Oshawa, the declines were explained by lower selling prices, while in Victoria, builders reduced their prices as a result of continuing slow market conditions.

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