Canada: New Housing Price Index, May 2017

Toronto and Vancouver were largely responsible for a 0.7% monthly rise in new house prices in Canada in May.

New Housing Price Index, monthly change

Toronto was the largest contributor to the national gain, rising 1.1% from April to May. Builders linked higher prices to market conditions, a shortage of developed land and higher construction costs.

Prices for new houses in Vancouver rose for a third consecutive month, up 2.2% in May and the largest increase for this census metropolitan area since May 2007. Builders cited favourable market conditions as the main reason for the gain.

Builders in Guelph (+1.7%), London (+1.5%) and St. Catharines–Niagara (+0.9%) also reported market conditions as the primary driver of higher new house prices.

Prices were down in five metropolitan areas and unchanged in nine.

New Housing Price Index, 12-month change

New house prices in Canada rose 3.8% over the 12-month period ending in May, led by a 9.0% increase in Toronto.

Prices were down in six metropolitan areas, with Calgary (-0.9%) 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