New Housing Price Index, October 2014
The New Housing Price Index (NHPI) rose 0.1% in October, following an identical increase in September.
The census metropolitan area (CMA) of Vancouver was the top contributor to the October growth, with prices up 0.4% over the previous month. Builders cited higher material costs and market conditions as the primary reasons for the increase, the largest in that CMA since April 2010.
New housing prices in the CMA of Hamilton also rose 0.4% in October. Builders reported market conditions and increased city development charges as the main reasons for the increase. Prices in Hamilton have risen for nine consecutive months.
Prices in Kitchener–Cambridge–Waterloo were up 0.3% for the third month in a row. Builders continued to report market conditions as the reason for the increase.
In Calgary, where new housing prices rose 0.2% over September, builders cited higher material and labour costs as the main reasons for the gain.
Prices were unchanged in 10 of the 21 metropolitan areas surveyed.
New home prices fell 0.3% in St. Catharines–Niagara, as builders offered incentives to stimulate sales. The decrease—the largest in that CMA since November 2010—followed three consecutive months of price increases.
Prices were down 0.2% in Ottawa–Gatineau and Windsor, as builders in both CMAs reported lower negotiated selling prices. This was the first monthly decrease in Windsor since December 2013, while new housing prices in Ottawa–Gatineau have fallen throughout most of 2014.
On a year-over-year basis, the NHPI rose 1.6% in October. Annual price movements at the national level have ranged from gains of 1.3% to 1.6% since September 2013.
Calgary (+6.6%) and the combined metropolitan region of Toronto and Oshawa (+2.5%) continued to lead the annual growth. Other significant year-over-year increases occurred in Hamilton (+2.8%), St. Catharines–Niagara (+2.1%) and London (+1.9%).
Among the 21 metropolitan areas surveyed, 5 posted 12-month price declines in October: Charlottetown (-1.7%), Victoria (-1.5%), Ottawa–Gatineau (-1.3%), Vancouver (-0.6%) as well as the combined metropolitan region of Saint John, Fredericton and Moncton (-0.4%).
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 as well as 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 November 2014 will be released on January 8, 2015.
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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