New Housing Price Index, February 2018
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Released: 2018-04-12
February 2018
-0.2% 
(monthly change)
February 2018
0.0%
(monthly change)
February 2018
0.0%
(monthly change)
February 2018
0.0%
(monthly change)
February 2018
0.0%
(monthly change)
February 2018
0.4% 
(monthly change)
February 2018
-0.3%
(monthly change)
February 2018
0.1%
(monthly change)
February 2018
-0.5%
(monthly change)
February 2018
-0.3%
(monthly change)
February 2018
0.0%
(monthly change)
Lower prices for new homes in Toronto were the main reason for a national price decline in February.
Chart 1
New Housing Price Index
New Housing Price Index, monthly change
Following two consecutive months of no change, new home prices were down 0.2% nationally. This was the first decrease at the Canada level since July 2010. Recent mortgage rate increases along with tighter mortgage regulations are likely contributors to the decline.
Builders in Toronto reduced their prices by 0.6% in February, citing unfavourable market conditions. This was the second consecutive decline, and the largest for this census metropolitan area (CMA) in eight years.
Also in the Greater Golden Horseshoe, builders in both Oshawa and Hamilton reported price decreases of 0.1% for new houses, while prices in Guelph and Kitchener–Cambridge–Waterloo were unchanged.
All four surveyed CMAs in Alberta and Saskatchewan registered price declines in February. Builders tied the decreases to lower negotiated selling prices. According to the Canada Mortgage and Housing Corporation, the inventory of newly completed and unsold single-family dwellings rose in three of the four CMAs in February 2018 compared with the same month a year earlier. Single-family dwellings include row, single and semi-detached houses.
House prices were unchanged for a second consecutive month in all three CMAs in British Columbia.
Of the six CMAs reporting higher new house prices, Montréal (+0.6%) had the largest increase. Builders cited higher construction costs as the main reason for the gain.
Chart 2
Lower prices for new homes in Toronto were the main reason for a national price decline in February
New Housing Price Index, 12-month change
New home prices rose 2.6% year over year in February. Vancouver (+9.1%) and London (+7.1%) recorded the largest 12-month gains.
New house prices in Toronto increased 2.8% year over year.
Among the five CMAs reporting declines, Saskatoon recorded the largest 12-month decrease (-2.0%).
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 townhouses or row homes. The current value of the structure is independently indexed and is presented as the house series. 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 index is available at the Canada and provincial levels, and for 27 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 provincial harmonized sales tax.
The index is not subject to revision and is not seasonally adjusted.
A Historical Timeline of Canadian Producer Price Statistics
"A Historical Timeline of Canadian Producer Price Statistics," which is part of the Prices Analytical Series (62F0014M), was created to showcase the key milestones in the history of Canadian producer price statistics. This historical timeline contains answers to questions such as: Who collected Canada's first statistics? What do Canadian producer price indexes measure?
Infographic: Producer Price Indexes at a Glance
The infographic "Producer Price Indexes at a Glance," which is part of Statistics Canada — Infographics (11-627-M), demonstrates how producer price indexes for goods and services are calculated and why they are important for the Canadian economy.
Next release
The New Housing Price Index for March will be released on May 10.
Contact information
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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