Canadian New-Home Prices Fall For First Time In 13 Months

Canadian new-home prices fell for the first time in 13 months in July by 0.1%, according to The Globe and Mail (via @pkedrosky). Statscan suggested that the price slide may be a result of the introduction of the new Harmonized Sales Tax.

While this might seem like a tiny fall, it is certainly an event many bubble prognosticators have been looking out for.

The Canadian real estate bubble has long been heralded as the next big burst, with Vancouver home sales falling 30% in June and a $1 billion Olympic ghost town in the city that can’t be sold.

As a reminder of the sector’s growth in Canada, check out this chart from Paul Kedrosky.

Canada Real Estate

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