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New Housing Price Index, July 2016

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Released: 2016-09-08

New Housing Price Index — Canada

July 2016

0.4% 

(monthly change)

New Housing Price Index — N.L.

July 2016

-0.3% 

(monthly change)

New Housing Price Index — P.E.I.

July 2016

0.0%

(monthly change)

New Housing Price Index — N.S.

July 2016

0.3% 

(monthly change)

New Housing Price Index — N.B.

July 2016

0.0%

(monthly change)

New Housing Price Index — Que.

July 2016

0.1% 

(monthly change)

New Housing Price Index — Ont.

July 2016

0.8% 

(monthly change)

New Housing Price Index — Man.

July 2016

0.1% 

(monthly change)

New Housing Price Index — Sask.

July 2016

-0.1% 

(monthly change)

New Housing Price Index — Alta.

July 2016

0.0%

(monthly change)

New Housing Price Index — B.C.

July 2016

0.6% 

(monthly change)

The New Housing Price Index (NHPI) rose 0.4% in July compared with the previous month, driven mainly by new housing prices in the combined region of Toronto and Oshawa. Prices have increased at the national level for 16 consecutive months.

Chart 1  Chart 1: New Housing Price Index
New Housing Price Index

New Housing Price Index, monthly change

The combined region of Toronto and Oshawa (+1.0%) was the top contributor to the national gain, recording the largest monthly price advance among the census metropolitan areas (CMAs) covered by the survey. Builders reported market conditions and new list prices as reasons for the increase.

Other significant price increases occurred in Victoria (+0.8%), Hamilton (+0.7%) and Vancouver (+0.6%). Builders cited market conditions as the main reason for the price gains in all three CMAs. This was the largest price movement observed in Hamilton since August 2015.

New housing prices rose 0.2% in Québec, following seven consecutive months of no change.

Prices were unchanged in 5 of the 21 metropolitan areas surveyed.

Lower negotiated selling prices accounted for the price declines observed in St. John's (-0.3%) and Windsor (-0.2%). New house prices in Saskatoon declined 0.2% for a second month in a row, reflecting market conditions.

New Housing Price Index, 12-month change

The NHPI rose 2.8% over the 12-month period ending in July, the largest increase at the national level since August 2010.

Chart 2  Chart 2: The combined metropolitan region of Toronto and Oshawa posts the highest year-over-year price increase
The combined metropolitan region of Toronto and Oshawa posts the highest year-over-year price increase

The combined metropolitan region of Toronto and Oshawa (+7.0%) was the top contributor to the gain, recording the largest year-over-year price increase in July. This marked the largest 12-month rise for the region since June 2004.

Other notable increases were observed in Vancouver (+5.5%), St. Catharines–Niagara (+5.1%) and Victoria (+3.6%). This was the largest year-over-year gain in Victoria since July 2006, and the largest rise in St. Catharines–Niagara since July 2008.

Among the 21 metropolitan areas surveyed, 7 recorded year-over-year price declines in July. Saskatoon (-3.2%) and Calgary (-0.6%) posted the largest 12-month decreases for the third consecutive month.


  Note to readers

The New Housing Price Index (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 survey covers the following dwelling types: single dwellings, semi-detached houses, and townhouses or row homes. 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 residual (total selling price less land value), which mainly relates to the current cost of the structure, is also independently indexed and is presented as the estimated house series. The index is available at the Canada and provincial levels, and for 21 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 harmonized sales tax.

The index is not subject to revision and is not seasonally adjusted.

Infographic: Producer Price Indexes at a Glance

The infographic, "Producer Price Indexes at a Glance," which is part of Statistics Canada — Infographics (Catalogue number11-627-M), is available. This infographic demonstrates how producer price indexes for goods and services are calculated and why they are important for the Canadian economy.

Next release

The NHPI for August will be released on October 13.

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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