Growth in the price of new homes in Canada slowed down in September as some cities experienced declining prices from the previous month, Statistics Canada reported on Monday.

For the month of September, the New Housing Price Index rose 0.1% from August — growth that was slightly better than expected, according to BMO Capital Markets economist Robert Kavcic.

Prices of new homes across the country increased 2.1% from September 2007, down from growth of 2.3% in August. This is the slowest pace of growth since 2000, Kavcic wrote in response to the report.

Market conditions were particularly difficult in Saskatoon, where deceleration was evident in a 2.1% drop in new housing prices from August. Year-over-year, Saskatoon prices rose by 5.5%.

Edmonton also witnessed a significant slowdown, where prices in September dropped 5.8% from September 2007, and 0.1% from August 2008.

Other parts of the country continued to experience strengthening prices, including St. John’s and Regina, which both experienced increases of 22.7% from September 2007. From August, price levels in both cities were unchanged.

But these cities are down from record highs earlier this year, including a peak of 34% growth in Regina in April, and 24.3% growth for St. John’s in July.

In Ottawa–Gatineau, prices were 4.3% higher than September 2007 and Toronto and Oshawa saw 3.0% growth. Compared to August, Toronto prices were down 0.1%.

The west coast witnessed weaker growth, with Vancouver prices up 1.4% year-over-year, and Victoria prices up 0.2%.

In Quebec City, the 12-month growth rate was 6.1% and was unchanged from August. Montreal prices increased 4.8% from last year and slipped 0.1% from August.