Release Explanation: Change in the selling price of new homes, a leading indicator of the housing market's health.
Trade Desk Thoughts: According to Statistics Canada, contractors' selling prices for new homes decreased 0.6% between December and January, a slightly faster pace than the 0.1% decline observed the previous month. This resulted in a New Housing Price Index of 156.4.
The New Housing Price Index decreased by 0.8% in January compared with the same month a year earlier, the first year-over-year decrease since January 1997.
The largest decline was seen in Edmonton (-2.8%), followed by Calgary (-2.1%), Victoria (-1.1%) and Vancouver (-0.7%). Builders in all four cities report difficult market conditions.
In both St. John's and Saskatoon, prices increased 0.8% from a month earlier while Québec posted a monthly increase of 0.6%. In the Prairie region, 12-month declines were recorded in Edmonton (-10.4%), Calgary (-6.5%) and Saskatoon (-2.7%). On the West Coast, Victoria (-4.2%) and Vancouver (-3.2%) each posted year-over-year declines.
Forex Technical Reaction: Crude has declined about $1.10 in overnight trading but the cad (USD/CAD) has declined.