Nationally, new home prices were up for a second consecutive month in July.
New Housing Price Index, monthly change
Builders in 15 of the 27 census metropolitan areas (CMAs) surveyed reported higher prices in July, pushing the Canada-level index up 0.1%.
The largest gain was in London (+0.5%), where builders reported higher construction costs and favourable market conditions as the primary reasons for the increase. This marked the ninth consecutive monthly price rise in this CMA. According to the Canada Mortgage and Housing Corporation, single-family home completions in London grew 41.5% year to date in July compared with the same period in 2017. Single-family homes include row, single, and semi-detached houses.
Higher prices for new homes in London reflect increased demand, coinciding with annual growth in employment (+4.0%) and in population (+1.8%) in July, as well as a tight resale market. According to the Canadian Real Estate Association, new listings in this CMA were down 17.0% year to date in July, compared with the same period in 2017.
New home prices edged up 0.1% in Toronto in July, the first increase since October 2017. In contrast, prices in Vancouver (-0.2%) declined for the first time since February 2017.
New Housing Price Index, 12-month change
New house prices rose 0.5% year over year in July. The largest 12-month gains were in Ottawa (+4.8%) and London (+4.4%).
Among the five CMAs reporting declines, Toronto and Regina (-1.2% each) recorded the largest 12-month decreases.
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Dean Popplewell
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