New Housing Price Index, August 2015
The New Housing Price Index (NHPI) rose 0.3% in August, largely a result of higher new home prices in Ontario.
The combined region of Toronto and Oshawa was the top contributor to the increase, with prices up 0.6% over the previous month. Builders reported market conditions as the main reason for the gain. This marks the seventh straight month of price increases in that region.
The census metropolitan area (CMA) of Hamilton recorded the largest price increase in August, up 0.8%. Builders cited market conditions as the primary reason for the advance, the largest in that CMA since April 2013. Prices in Hamilton have been rising for four consecutive months.
Prices rose 0.7% in the CMA of St. Catharines–Niagara, following a 0.1% decrease the previous month. Builders reported higher material and labour costs and higher list prices as the main reasons for the increase—the largest in that CMA since February 2014.
New housing prices rose 0.2% in the CMAs of Montréal and London. According to builders, market conditions attributed to the rise in Montréal, while builders in London reported higher construction costs.
Prices were unchanged in 8 of the 21 metropolitan areas surveyed.
The CMAs of Québec and Regina recorded the largest price decreases in August as both fell 0.2%. Builders in the CMA of Québec cited market conditions as the main reason for the decline. Builders in Regina reported lowered prices to stimulate sales.
New home prices declined 0.1% in both Charlottetown and Victoria. Builders in Charlottetown lowered prices to encourage sales. In the CMA of Victoria, higher list prices were offset by lower negotiated selling prices. The decrease in Victoria follows three consecutive months of no price change.
New Housing Price Index, 12-month change
On a year-over-year basis, the NHPI rose 1.3% in August, following identical increases in June and July.
The combined metropolitan region of Toronto and Oshawa was the top contributor to the increase in August, with prices up 3.8% over the same month a year earlier. This was the largest year-over-year increase in that CMA since January 2013.
The CMA of Hamilton also recorded a 3.8% year-over-year increase—the largest in that CMA since March 2008.
Other notable increases were observed in Kitchener–Cambridge–Waterloo (+1.6%), London (+1.5%) and Vancouver (+1.4%).
The combined metropolitan region of Saint John, Fredericton and Moncton recorded a 0.2% increase in August, the first annual increase in that CMA since May 2014.
Among the 21 metropolitan areas surveyed, 5 posted year-over-year price declines in August: Regina (-1.8%), Victoria (-1.6%), Ottawa–Gatineau (-1.0%), Québec (-0.6%) and Calgary (-0.2%). This was the first annual decline in Calgary since January 2012.
Note to readers
The New Housing Price Index (NHPI) 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 townhouses or row 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 NHPI for September will be released on November 12.
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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