New Housing Price Index

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The New Housing Price Index (NHPI) rose 0.3% in November, following a 0.2% increase in October.

Evolution of the New Housing Price Index

Chart description: Evolution of the New Housing Price Index

The metropolitan regions of Toronto and Oshawa, and Montréal were the top contributors to the increase in November. The positive impact of these metropolitan regions on the overall index was offset in part by decreases observed in Calgary and Vancouver.

Between October and November, Windsor (+2.0%) posted the largest monthly price advance, followed by Saskatoon (+1.2%). In Windsor, price increases were primarily the result of higher material costs and improved market conditions. This was the largest month-over-month price increase for this metropolitan region since November 1996 (+3.0%).

In Saskatoon, higher material and labour costs were the main reasons for the price increases.

In November, prices were unchanged in 6 of the 21 metropolitan regions surveyed.

The most significant monthly price declines were recorded in Calgary (-0.4%), Vancouver (-0.3%) and the aggregated metropolitan regions of Greater Sudbury and Thunder Bay (-0.3%).

Following three consecutive monthly price increases, some builders in Calgary reported that they lowered their prices in November to stimulate sales.

In Vancouver, a few builders offered promotional pricing while in Greater Sudbury and Thunder Bay, some builders indicated that they lowered their prices to remain competitive.

Year over year, the NHPI was up 2.5% in November. The main contributor to this advance was the metropolitan region of Toronto and Oshawa.

Toronto and Oshawa post the highest year-over-year price increase

Chart description: Toronto and Oshawa post the highest year-over-year price increase

The largest year-over-year price increases were recorded in Toronto and Oshawa (+6.2%), Winnipeg (+5.8%) and Regina (+5.3%).

Compared with November 2010, contractors' selling prices were also higher in Kitchener–Cambridge–Waterloo (+3.6%) and Charlottetown (+3.5%).

Among the 21 metropolitan regions surveyed, 4 posted 12-month price declines in November, led by Victoria (-1.7%).

Note: 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 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.

This release presents data that are not seasonally adjusted and the indexes published are final.

Available on CANSIM: table 327-0046.

Definitions, data sources and methods: survey number 2310.

The third quarter 2011 issue of Capital Expenditure Price Statistics (62-007-X, free) will be available soon.

The new housing price indexes for December will be released on February 9.

For more information, or to enquire about the concepts, methods or data quality of this release, contact Client Services (toll-free 1-888-951-4550; 613-951-4550; fax: 1-855-314-8765 or 613-951-3117; ppd-info-dpp@statcan.gc.ca), Producer Prices Division.