New Housing Price Index

The rate of growth in new housing prices decelerated for the 10th consecutive month in September, in line with a trend seen across most of the country.

Contractors' selling prices increased 6.2% between September 2006 and September 2007, a slowdown from the 6.5% gain observed in August.

On a monthly basis, prices increased 0.3% between August and September, resulting in a New Housing Price Index of 155.5 (1997=100).

Saskatoon again had the highest year-over-year increase of all census metropolitan areas. Selling prices there increased 47.0% from September 2006, but this was still slower than the record-high 53.6% gain in August.

Only two Western metropolitan areas showed growth in year-over-year increases. Prices rose 29.6% in Regina in September, compared with 29.2% in August. In Winnipeg, selling prices rose 16.2%, compared with 16.0% in August. In both centres, higher costs for carpenters and electricians drove the increase.

The Edmonton market remained strong with a 26.6% increase. New housing prices rose 5.9% in Calgary in September, the only Prairie city with a year-over-year increase below 10%. This occurred despite higher development costs, as new lots were released into the market.

The pace of growth in Vancouver slowed to 6.1%. In Victoria, new housing prices edged up only 0.2%, as some builders lowered prices to stimulate sales.

Deflation occurred in only one area: Windsor. As demand slowed, contractors in Windsor reduced prices, resulting in a year-over-year decline of 3.2%.

Elsewhere in Ontario, however, year-over-year housing price increases remained mostly steady. Healthy home markets in Toronto (+2.7%) and Hamilton (+3.3%) allowed builders to moderately increase prices.

New housing prices rose 4.6% in Montréal, where decreases due to a competitive market were offset by increased costs.

In the Atlantic Provinces, increased costs for labour and materials pushed prices up in St. John's (+5.7%) and Halifax (+7.3%).

On a monthly basis, the fastest gains occurred in Greater Sudbury and Thunder Bay (+0.9%), Winnipeg (+0.8%) and St. John's (+0.8%). Windsor (-0.4%) and Victoria (-0.3%) both slipped back into negative territory.

Available on CANSIM: table 327-0005.

Definitions, data sources and methods: survey number 2310.

The third quarter 2007 issue of Capital Expenditure Price Statistics (62-007-XWE, free) will be available in February.

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

Table(s).