Contractors' selling prices for new homes countrywide dropped 0.6 per cent in April, compared with a 0.5 per cent decline in March, and prices declined the most in Vancouver, Statistics Canada reported Wednesday.

The federal agency said its new-housing price index has slipped 3.2 per cent since it reached a record high of 158.7 last September.

In Vancouver, prices fell 1.2 per cent. That drop was followed by Edmonton, which was down 0.9 per cent, and Calgary, which was down 0.8 per cent.

Statistics Canada said most builders are still reducing prices to boost sales in Vancouver.

Some builders in Alberta reported an increase in material costs because of new fire code regulations, but those increases were not reflected in prices for new houses because builders lowered prices or offered free upgrades in a bid to stay competitive.

Prices fell in Hamilton and Kitchener, Ont., by 0.7 per cent; in Toronto and nearby Oshawa by 0.6 per cent; and in Victoria by 0.6 per cent.

Between March and April, most contractors' selling prices for new homes dropped or stayed the same for the cities surveyed. The exceptions were in St. Catharines-Niagara, Ont., where prices rose by 0.6 per cent. In St. John's, prices rose by 0.3 per cent, while in Saint John, Fredericton and Moncton, prices rose by 0.2 per cent.

In St. Catharines-Niagara, contractors said selling prices have gone back to their regular list price levels after a few months of lower transaction prices. In St John's, builders' prices have been on the rise because of high demand for housing. That demand has created a shortage of lots.

Statistics Canada reported that the new-housing price index decreased year-over-year by three per cent in April, mostly because of decreases in Western Canada.

On the Prairies, 12-month declines were noted in Edmonton, where there was a drop of 12.5 per cent, in Saskatoon, which was down 11.9 per cent, and in Calgary, where there was a drop of 8.8 per cent.

On the West Coast, Vancouver and Victoria each also posted year-over-year declines. Prices in Vancouver dropped nine per cent, while Victoria dropped seven per cent.