New Housing Price Index

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The New Housing Price Index (NHPI) rose 0.3% in November following a 0.1% advance in October.

The top contributors to the NHPI monthly increase in November were Toronto and Oshawa, as well as Ottawa–Gatineau.

Between October and November, prices increased the most in St. John's (+4.2%) followed by Ottawa–Gatineau (+1.6%) and Halifax (+1.2%).

In St. John's, prices rose as a result of increased labour costs and higher land development fees.

In Ottawa–Gatineau as well as in Halifax, the increase was mostly a result of increased material and labour costs.

The largest price declines were recorded in Windsor (-1.8%) and St. Catharines–Niagara (-1.1%), followed by Charlottetown and Victoria (both down 0.4%).

In Windsor and in St. Catharines–Niagara, some builders lowered their prices in order to generate sales while others offered discounts and bonus incentive packages in November.

Year-over-year, the NHPI was up 2.3% in November following a 2.5% increase in October.

The main contributors to the year-over-year increase of the NHPI in November were the metropolitan regions of Toronto and Oshawa, of Montréal and of Ottawa–Gatineau.

The largest year-over-year increase was recorded in St. John's (+8.6%), followed by Regina (+6.0%) and Ottawa–Gatineau (+5.4%).

Compared with November 2009, contractors' selling prices were also higher in Winnipeg (+5.1%), as well as in Montréal and Saskatoon (both up 4.0%).

Among the 21 metropolitan areas surveyed, 5 registered 12-month declines in November: Windsor (-3.1%) followed by Charlottetown (-2.0%), Greater Sudbury and Thunder Bay (-1.2%), St. Catharines–Niagara and Victoria (both down 1.1%).

Note: With the publication of the December 2010 reference month scheduled for February 10, 2011, the base year of the New Housing Price Index (NHPI) will be changed from 1997 to 2007.

The NHPI 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 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 (GST) or the Harmonized Sales Tax (HST).

The HST came into effect July 1, 2010, in Ontario and British Columbia. Prior to the introduction of the HST, the provincial sales tax on building materials in Ontario and in British Columbia was embedded in the contractor's selling prices of new houses. With the introduction of the HST in these two provinces, the provincial sales tax is now replaced by the HST, a value added tax which is conceptually excluded from the index.

This release presents data that are not seasonally adjusted and the indexes published are final.

Available on CANSIM: table 327-0005.

Definitions, data sources and methods: survey number 2310.

The third quarter 2010 issue of Capital Expenditure Price Statistics (62-007-X, free) will be available soon.

The new housing price indexes for December will be released on February 10.

For more information, or to enquire about the concepts, methods or data quality of this release, contact Client Services (613-951-4550; toll-free 1-888-951-4550; fax: 613-951-3117; ppd-info-dpp@statcan.gc.ca), Producer Prices Division.