Lower prices for new homes in Toronto were the main reason for a national price decline in February.

Following two consecutive months of no change, new home prices were down 0.2% nationally. This was the first decrease at the Canada level since July 2010. Recent mortgage rate increases along with tighter mortgage regulations are likely contributors to the decline.

Builders in Toronto reduced their prices by 0.6% in February, citing unfavourable market conditions. This was the second consecutive decline, and the largest for this census metropolitan area (CMA) in eight years.