New Housing Price Index, October 2015
The New Housing Price Index (NHPI) rose 0.3% in October, following a 0.1% increase in September. The gain was largely attributable to higher new home prices in Ontario.
The combined region of Toronto and Oshawa (+0.5%) was the top contributor to the increase, recording the largest monthly price advance among the census metropolitan areas (CMAs) covered by the survey. Market conditions and the higher cost of land were reported by some builders as the reasons for the increase.
Prices rose 0.4% in Victoria, as builders cited higher list prices for homes in new phases of development. This was the first monthly price increase in Victoria since April 2013.
New housing prices rose 0.3% in the CMAs of Hamilton and Edmonton. Builders in Hamilton attributed the rise to market conditions, while builders in Edmonton reported higher prices to offset the cost of new building code regulations. This was the largest monthly increase in Edmonton since May 2014 and followed three consecutive months of no change.
Vancouver recorded a 0.2% price increase in October, as builders reported higher prices because of market conditions and increased material and labour costs. New home prices in Vancouver have been rising steadily for five months.
Prices were unchanged in 10 of the 21 metropolitan areas surveyed.
New housing prices in Calgary were unchanged for the third consecutive month. Builders reported that price increases to cover the cost of new building code regulations were offset by lower negotiated selling prices.
The CMAs of Saskatoon (-0.5%) and St. Catharines–Niagara (-0.3%) recorded the largest price decreases in October. Builders in both CMAs reported lower negotiated selling prices as the primary reason for the decline. This was the second consecutive monthly decrease in both areas, and the largest in St. Catharines–Niagara since October 2014.
New Housing Price Index, 12-month change
The NHPI increased 1.5% over the 12-month period ending in October. This was the largest year-over-year increase at the national level since December 2014.
The combined metropolitan region of Toronto and Oshawa (+4.0%) was the top contributor, recording the largest 12-month price increase in October. This was the largest year-over-year gain in the region since January 2013.
Other notable increases were observed in Hamilton (+3.6%), Winnipeg (+1.6%), Vancouver (+1.6%), Kitchener–Cambridge–Waterloo (+1.2%) and London (+1.1%).
Among the 21 metropolitan areas surveyed, 7 posted year-over-year price declines in October: Regina (-1.6%), Saskatoon (-1.1%), Calgary (-0.6%), Québec (-0.6%), Victoria (-0.5%), Ottawa–Gatineau (-0.4%) and Charlottetown (-0.1%). This was the largest year-over-year decrease in Saskatoon since January 2010, and the smallest year-over-year decline in Victoria since August 2010.
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 November 2015 will be released on January 14, 2016.
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; STATCAN.infostats-infostats.STATCAN@canada.ca) or Media Relations (613-951-4636; STATCAN.mediahotline-ligneinfomedias.STATCAN@canada.ca).
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