Canada: New Housing Price Index, March 2017

The New Housing Price Index (NHPI) rose 0.2% in March compared with the previous month. Higher new house prices in Vancouver and Toronto led the gain.

New Housing Price Index, monthly change

New house prices were up in 10 of the 27 metropolitan areas surveyed, with the largest increases in Oshawa (+1.1%) and Guelph (+0.9%). In Oshawa, builders cited higher construction costs and improving market conditions as reasons for the gain. Builders in Guelph linked higher new house prices to improving market conditions and a shortage of developed land.

Vancouver was the top contributor to the national gain, with prices up 0.7%. Builders reported market conditions as the main source of the rise. This was the first price increase in five months and the largest since May 2016.

Ottawa (+0.6%) and Windsor (+0.4%) also posted significant price gains. Builders in Ottawa reported market conditions, a shortage of developed land and higher construction costs as the key reasons for the increase, the largest since April 2011. In Windsor, builders tied the price rise to higher land development costs and improving market conditions.

In Toronto, prices edged up 0.2%, the result of favourable market conditions.

New house prices were down in three metropolitan areas and unchanged in 14.

New Housing Price Index, 12-month change

The NHPI rose 3.3% over the 12-month period ending in March, largely reflecting higher prices for new homes in Toronto (+8.4%). Other notable year-over-year increases were reported in Victoria (+6.3%), Windsor (+6.2%) and St. Catharines-Niagara (+6.0%).

In March, six metropolitan areas recorded 12-month price declines with St. John’s (-0.7%) posting the largest decrease.

StatsCanada

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Dean Popplewell

Dean Popplewell

Vice-President of Market Analysis at MarketPulse
Dean Popplewell has nearly two decades of experience trading currencies and fixed income instruments. He has a deep understanding of market fundamentals and the impact of global events on capital markets. He is respected among professional traders for his skilled analysis and career history as global head of trading for firms such as Scotia Capital and BMO Nesbitt Burns. Since joining OANDA in 2006, Dean has played an instrumental role in driving awareness of the forex market as an emerging asset class for retail investors, as well as providing expert counsel to a number of internal teams on how to best serve clients and industry stakeholders.
Dean Popplewell