New Housing Price Index

The New Housing Price Index rose 0.8% in June, up from May's increase of 0.5%. Despite June's significant month-over-month increase, the rate of change for this index of contractors' selling prices was 4.7% on a 12-month basis, only slightly larger than the 4.6% increase recorded in May.

The New Housing Price Index (1997=100) rose to 129.3 in June.

Prices advanced in 12 of the 21 metropolitan areas surveyed. Winnipeg led the way with a monthly increase of 3.0%. Favourable market conditions coupled with a shortage of serviced lots were cited as the main reasons for this increase. Significant increases were also recorded in Edmonton (+1.6%), Calgary (+1.3%) and Toronto and Oshawa (+1.2%), the result of higher costs for building materials and labour as well as higher land values. The increases in land values in these cities were attributed to higher costs associated with moving into new phases of developments.

Other noteworthy gains were observed in Victoria (+0.9%) and Kitchener (+0.8%), where favourable market conditions and higher land values pushed prices up. Of the 12 metropolitan areas showing increases, land prices rose in 8.

Monthly increases were also noted in Charlottetown, Saint John, Fredericton and Moncton, Montréal, Ottawa–Gatineau, St. Catharines–Niagara and Windsor.

Six metropolitan areas registered no monthly change while Hamilton, Greater Sudbury/Grand Sudbury and Thunder Bay and Saskatoon posted minor decreases.

Available on CANSIM: table 327-0005.

Definitions, data sources and methods: survey number 2310.

The second quarter 2005 issue of Capital Expenditure Price Statistics (62-007-XPB, $26/$85) will be available in October.

For more information, or to enquire about the concepts, methods or data quality of this release, contact our Client Services Section (613-951-9606, fax: 613-951-1539; infounit@statcan.gc.ca) or Randy Sterns (613-951-8183; sterran@statcan.gc.ca), Prices Division.