Although Canada’s new housing price index rose last year, it dropped three per cent in Victoria — the largest decrease among the largest 21 metropolitan regions in the country.

According to Statistics Canada, new house prices have been declining in Victoria year over year since the latter part of 2008.

Winnipeg posted the largest annual increase in new housing prices as it saw a five per cent increase over 2011.

The national annual average increase in new housing prices was 2.4 per cent, following a 2.2 per cent rise in both 2011 and 2010, and a 2.3 per cent decline in 2009.

In Victoria prices dropped 0.1 per cent in December compared to the month previous. In Vancouver the cost of a new home fell 0.3 per cent. Builders in both cities cited market conditions as the reason for the drop.

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