New Housing Price Index, December 2018
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Released: 2019-02-14
December 2018
0.0%
(monthly change)
December 2018
0.1% 
(monthly change)
December 2018
0.1%
(monthly change)
December 2018
0.0%
(monthly change)
December 2018
0.0%
(monthly change)
December 2018
0.0%
(monthly change)
December 2018
0.0%
(monthly change)
December 2018
-0.1% 
(monthly change)
December 2018
-0.2%
(monthly change)
December 2018
0.1%
(monthly change)
December 2018
-0.1%
(monthly change)
New housing prices were unchanged at the national level for the fifth consecutive month.
Chart 1
New Housing Price Index
New Housing Price Index, monthly change
New home builders in 17 of the 27 census metropolitan areas (CMAs) surveyed reported flat or lower prices in December. Prices at the national level were largely unchanged throughout 2018.
The largest price decline in December was in Regina (-0.4%), with the decrease tied to lower negotiated selling prices and promotions to stimulate sales.
New home prices in Toronto and Vancouver each declined by 0.1% in December, with decreases in both CMAs linked to unfavourable market conditions.
Ottawa and Sherbrooke reported the largest price increases in December, both up 0.4%. Market conditions were the primary reason for the gain in Ottawa, while higher construction costs contributed to the rise in Sherbrooke.
Chart 2
New housing prices at the national level are unchanged for the fifth consecutive month
New Housing Price Index, 12-month change
Nationally, new house prices were unchanged year over year in December, compared with a 3.3% annual increase in December 2017.
Among the 11 CMAs reporting 12-month decreases in December, Regina recorded the largest decline (-3.0%). New home prices have been falling in Regina since February 2018.
According to the Association of Regina Realtors, the total number of home sales in Regina was down 7% over the previous year, to its lowest level since 2005.
New home prices decline in Toronto and Vancouver
New home prices fell 1.4% year over year in Toronto in December, while in Vancouver prices declined 0.2%. This was the first year-over-year decrease in Vancouver since March 2015. Tighter mortgage regulations as well as provincial interventions, mostly targeting the Toronto and Vancouver housing markets, likely contributed to the slowdown in new home prices throughout 2018 in these historically expensive CMAs.
The pace of new home construction also slowed in both CMAs in 2018. According to the Canada Mortgage and Housing Corporation, single-family housing starts were down 38.2% in Toronto and 13.7% in Vancouver compared with 2017. Single-family homes include row, single and semi-detached houses.
Continued growth in the more affordable housing markets of Ottawa and London
New home prices continued to rise in both Ottawa and London. These two Ontario CMAs led the country for a seventh consecutive month with the largest 12-month gains in December, as Ottawa posted a 5.2% increase and London reported a 3.6% rise. Favourable market conditions as well as higher construction costs throughout 2018 contributed to the annual price increases in both CMAs.
Note to readers
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 survey covers the following dwelling types: single dwellings, semi-detached houses and townhouses or row homes. The current value of the structure is independently indexed and is presented as the house series. The survey also collects contractors' estimates of the current value (evaluated at market price) of the land. These estimates are independently indexed to provide the published series for land. The index is available at the Canada and provincial levels, and for 27 metropolitan areas.
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 provincial harmonized sales tax.
The index is not subject to revision and is not seasonally adjusted.
Coming soon: Experimental New Condominium Apartment Price Index
On February 15, Statistics Canada will release the first Experimental New Condominium Apartment Price Index (NCAPI). The new series complements the New Housing Price Index, which excludes apartment-style condominium units. The release of the Experimental NCAPI begins to close important data gaps in the measurement of residential property prices, by producing more comprehensive and representative price indexes for the new housing market.
The Experimental NCAPI series begins in the first quarter of 2017 and covers six census metropolitan areas (CMAs). Data will be available in table 18-10-0162 on the day of release. The index methodology and data sources continue to be refined and tested. For these reasons, the indexes are considered experimental at this time.
Products
Statistics Canada has a new dashboard: "Housing Market Indicators." This web application provides access to key housing market indicators for Canada, by province and by CMA. These indicators are automatically updated with new information from monthly releases, giving users access to the latest data.
A data table highlighting changes in new home prices in Canada and select CMAs is available as part of the Just the Facts series.
A Historical Timeline of Canadian Producer Price Statistics
"A Historical Timeline of Canadian Producer Price Statistics," which is part of the Prices Analytical Series (62F0014M), was created to showcase the key milestones in the history of Canadian producer price statistics. This historical timeline contains answers to questions such as: Who collected Canada's first statistics? What do Canadian producer price indexes measure?
Infographic: Producer Price Indexes at a Glance
The infographic "Producer Price Indexes at a Glance," which is part of Statistics Canada — Infographics (11-627-M), demonstrates how producer price indexes for goods and services are calculated and why they are important for the Canadian economy.
Next release
The New Housing Price Index for January will be released on March 14.
Products
The dashboard "Housing Market Indicators" is now available.
Contact information
For more information, or to enquire about the concepts, methods or data quality of this release, contact us (toll-free 1-800-263-1136; 514-283-8300; STATCAN.infostats-infostats.STATCAN@canada.ca) or Media Relations (613-951-4636; STATCAN.mediahotline-ligneinfomedias.STATCAN@canada.ca).
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