New Housing Price Index, September 2014
The New Housing Price Index (NHPI) rose 0.1% in September, following a 0.3% increase in August. Provincially, increases in Ontario and Alberta offset declines in Quebec and Manitoba.
The combined metropolitan region of Toronto and Oshawa was the top contributor to the September growth, with prices up 0.3% over the previous month. Builders reported new list prices, attributable to market conditions and strong consumer demand, as the primary reason for the increase.
The census metropolitan area (CMA) of London (+0.5%) recorded the largest monthly price increase in September. Builders cited increased city development charges as the main reason for the price rise, the largest since October 2013.
New housing prices were up 0.3% in the CMAs of Calgary, Kitchener–Cambridge–Waterloo and Halifax. Builders in Calgary reported higher material and labour costs, as well as market conditions, as the reasons for the increase. Higher prices in Kitchener–Cambridge–Waterloo were primarily attributable to market conditions. In Halifax, development costs contributed to the price increase, the biggest in 14 months.
Prices were unchanged in 6 of the 21 metropolitan areas surveyed.
In Victoria, prices fell 0.7% as result of lower negotiated selling prices in September. This was the largest decrease in that CMA since May 2012.
Prices were down 0.4% in Winnipeg as several builders offered promotions and incentives to stimulate sales. This was the first decline in new housing prices in that city in more than 18 years.
Prices fell 0.3% in Montréal as a result of market conditions and lower negotiated selling prices. This was the largest price decline in Montréal since December 2010.
On a year-over-year basis, the NHPI rose 1.6% in September, up slightly from the August increase of 1.5%. Calgary (+6.5%) and the combined metropolitan region of Toronto and Oshawa (+2.5%) continued to lead the annual growth, albeit Calgary's price increases have been slowing over the past few months.
Other significant year-over-year increases occurred in Hamilton (+3.1%), St. Catharines–Niagara and London (both up 2.4%).
Among the 21 metropolitan areas surveyed, 5 posted 12-month price declines in September: Charlottetown (-1.8%), Victoria (-1.7%), Vancouver (-1.2%), Ottawa–Gatineau (-1.1%) and the combined metropolitan region of Saint John, Fredericton and Moncton (-0.3%).
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 index is available at the Canada and provincial levels, and for 21 metropolitan areas.
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 October will be released on December 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; firstname.lastname@example.org) or Media Relations (613-951-4636; email@example.com).
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