Contractors' selling prices for new homes decreased 0.1 per cent between November and December, Statistics Canada reported Wednesday.

The drop was the third straight monthly decline.

New housing prices decreased by 0.7 per cent in Saskatoon in December with some builders in that city reporting lower labour costs.

Prices declined by 1.3 per cent in Calgary and 0.3 per cent in Edmonton.

Statistics Canada reported that prices increased by 0.2 per cent in Ottawa-Gatineau in December, while they stayed the same in Toronto and Oshawa, Ont., Quebec City, Montreal and Vancouver.

In year-over-year comparisons, the new housing price index rose by 0.4 per cent in December, a slower pace than the 0.7 per cent advance noted in November.

Prices rise in St. John's

The largest year-over-year increase was noted in St. John's, at 24.4 per cent, while Regina came second at 21.7 per cent.

In Quebec, the 12-month growth rate was 5.4 per cent, while Montreal prices increased by 4.6 per cent.

Compared with December 2007, contractors' selling prices for new homes were 4.5 per cent higher in Ottawa-Gatineau and 1.9 per cent higher in Toronto and Oshawa.

In Saskatoon, prices rose 0.9 per cent year-over-year. Statistics Canada said the number confirms that there is a trend of "deceleration" in the city.

Statistics Canada reported that Edmonton, Calgary, Vancouver and Victoria all posted year-over-year declines, with Edmonton posting the highest decline at –8.2 per cent.

Year-over-year decreases were –4.3 per cent in Calgary, –2.3 per cent in Vancouver and –2.9 per cent in Victoria.

The agency said "slow market conditions" were responsible for the declines in Alberta.