The New Housing Price Index (NHPI) rose 0.4% in October compared with the previous month. The combined region of Toronto and Oshawa contributed the most to the monthly increase.
New Housing Price Index, monthly change
Among the 21 census metropolitan areas (CMAs) surveyed, new housing prices were up in 13, down in 3 and unchanged in 5.
Windsor (+1.5%) recorded the largest monthly price advance among the CMAs covered by the survey. Builders reported improved market conditions, higher construction costs and higher land costs as reasons for the increase.
Prices in the combined region of Toronto and Oshawa rose 1.3% in October. According to builders, market conditions, higher construction costs and a shortage of developed land were the main reasons for the gain.
Other notable price increases occurred in Victoria (+0.8%), in the combined region of Kitchener–Cambridge–Waterloo (+0.7%) and in Winnipeg (+0.6%). In Victoria, builders cited market conditions as the primary reason for the increase, while in both Kitchener–Cambridge–Waterloo and Winnipeg, builders reported higher construction costs. This was the largest monthly increase in Winnipeg since April 2013.
New home prices in Vancouver increased 0.2% in October. Market conditions and a shortage of available land for building were reported as the main reasons for the advance. However the increase was moderated by lower negotiated selling prices.
In Calgary, prices fell 0.2% in October. Although some builders reported higher construction and land development costs, these were offset by new bonus packages and promotions to stimulate sales.
New housing prices fell 0.1% in Edmonton and Regina. Deteriorating market conditions were the primary reason for the decline in both CMAs.
New Housing Price Index, 12-month change
The NHPI increased 3.0% over the 12-month period ending in October, reflecting gains in 15 of the metropolitan areas surveyed.
The combined metropolitan region of Toronto and Oshawa (+8.1%) was the top contributor to the gain, and also recorded the largest year-over-year price increase among the CMAs covered by the survey.
Other notable year-over-year gains were observed in St. Catharines–Niagara (+6.1%), Vancouver (+5.2%), Victoria (+4.7%) and Windsor (+4.1%).
In October, six metropolitan areas recorded year-over-year price declines, with Saskatoon (-2.0%), Calgary (-1.1%) and Edmonton (-0.9%) posting the largest decreases.