Statistics Canada reported on Thursday the New Housing Price Index (NHPI) edged down 0.1 percent m-o-m for the third straight month in July.

Economists had forecast the NHPI to remain unchanged m-o-m in July.

According to the report, Edmonton (-0.8 percent m-o-m) registered the largest price drop in July, with builders offering promotions and cash rebates to stimulate sales. In addition, the prices of new homes fell in Toronto (-0.6 percent m-o-m) and Vancouver (-0.5 percent m-o-m), due to unfavorable market conditions and lower negotiated selling prices. At the same time, prices of new homes continued to grow in Montreal (+1.6 percent m-o-m) and Ottawa (+0.9 percent m-o-m) because of a combination of factors including, higher construction costs and increased demand coupled with low supply in the housing market.

In y-o-y terms, NHPI was fell 0.4 in July after dropping 0.2 percent in the previous month. That marked the largest decrease in almost a decade.