New Housing Price Index, June 2014
The New Housing Price Index (NHPI) rose 0.2% in June, up slightly from the 0.1% gain observed in May. The increase was largely the result of higher new home prices in Ontario.
The combined metropolitan region of Toronto and Oshawa was the top contributor to the June growth, with prices up 0.3% over the previous month. Builders reported market conditions and new list prices as the primary reasons for the increase.
The census metropolitan area (CMA) of Hamilton (+0.6%) recorded the largest monthly price increase among the CMAs covered by the survey. Builders reported that higher costs for building permits and materials as well as market conditions contributed to the gain. This was the largest monthly price advance in Hamilton since October 2013.
Prices in London increased 0.4%, as builders reported improved market conditions and were no longer offering bonus packages to stimulate sales.
New home prices in Calgary rose by 0.3% in June, as builders continued to report higher material and labour costs, good market conditions and higher costs for developed land as the reasons for the gain. This was the smallest monthly price increase in Calgary since December 2013.
Other significant month-over-month increases occurred in the CMAs of Québec and Winnipeg (both up 0.2%). According to builders, land prices contributed to the increase in Québec, which posted its largest gain since November 2012. Builders cited increased material costs as the primary reason for higher new home prices in Winnipeg.
Prices were unchanged in 6 of the 21 metropolitan areas surveyed.
New housing prices were down 0.3% in Charlottetown. Prices in this CMA have been flat or decreasing for 11 consecutive months.
Monthly prices in Montréal declined 0.2% in June as a result of lower negotiated selling prices. The decrease followed six months of little or no price change.
Prices also declined in St. John's, the combined region of Saint John, Fredericton and Moncton, Ottawa–Gatineau, St. Catharines–Niagara and Vancouver (all down 0.1%).
On a year-over-year basis, the NHPI rose 1.5% in June, with Calgary (+7.3%) and the combined metropolitan region of Toronto and Oshawa (+2.3%) continuing to lead the annual growth.
Other significant year-over-year increases occurred in Hamilton (+2.8%) and Windsor (+2.4%), as well as St. Catharines–Niagara and Saskatoon (both up 2.3%).
Among the CMAs surveyed, five posted 12-month price declines in June: Charlottetown (-1.5%), Vancouver (-1.4%), Ottawa–Gatineau (-1.3%), Victoria (-0.9%) and Edmonton (-0.2%).
Note to readers
The New Housing Price Index measures changes over time in the selling prices of new residential houses agreed upon between the contractor and the buyer at the time of the signing of the contract. It is designed to measure the changes in the selling prices of new houses where detailed specifications pertaining to each house remain the same between two consecutive periods.
The survey covers the following dwelling types: single dwellings, semi-detached houses and row houses (town houses or garden homes). The survey also collects contractors' estimates of the current value (evaluated at market price) of the land. These estimates are independently indexed to provide the published series for land. The residual (total selling price less land value), which mainly relates to the current cost of the structure, is also independently indexed and is presented as the estimated house series.
The prices collected from builders and included in the index are market selling prices less value added taxes, such as the Federal Goods and Services Tax or the Harmonized Sales Tax.
The index is not subject to revision and is not seasonally adjusted.
The New Housing Price Index for July will be released on September 11.
For more information, or to enquire about the concepts, methods or data quality of this release, contact us (toll-free 1-800-263-1136; 514-283-8300; email@example.com) or Media Relations (613-951-4636; firstname.lastname@example.org).
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