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New Housing Price Index, September 2016

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Released: 2016-11-10

New Housing Price Index — Canada

September 2016

0.2% 

(monthly change)

New Housing Price Index — N.L.

September 2016

0.2% 

(monthly change)

New Housing Price Index — P.E.I.

September 2016

0.0%

(monthly change)

New Housing Price Index — N.S.

September 2016

0.0%

(monthly change)

New Housing Price Index — N.B.

September 2016

1.2% 

(monthly change)

New Housing Price Index — Que.

September 2016

0.3% 

(monthly change)

New Housing Price Index — Ont.

September 2016

0.3% 

(monthly change)

New Housing Price Index — Man.

September 2016

0.3% 

(monthly change)

New Housing Price Index — Sask.

September 2016

0.0%

(monthly change)

New Housing Price Index — Alta.

September 2016

-0.2% 

(monthly change)

New Housing Price Index — B.C.

September 2016

0.3% 

(monthly change)

The New Housing Price Index (NHPI) rose 0.2% in September compared with the previous month. Prices rose in 11 census metropolitan areas (CMAs), with the indexes from the combined region of Toronto and Oshawa and from Vancouver contributing the most to the monthly increase.

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

New Housing Price Index, monthly change

Windsor and the combined region of Saint John, Fredericton and Moncton, which both rose 1.2% in September, posted the largest monthly price advances among the CMAs covered by the survey. Builders in Windsor reported market conditions and higher land costs as reasons for the increase. This was the largest monthly price gain in Windsor since November 2011.

In the combined region of Saint John, Fredericton and Moncton, higher construction costs were the primary reason for the advance. This was the second consecutive price increase in the region this year, and the largest since June 2010.

Other notable price increases occurred in St. Catharines–Niagara (+0.8%), as well as in Victoria (+0.5%) and the combined region of Greater Sudbury and Thunder Bay (+0.5%). Builders in St. Catharines–Niagara cited market conditions and higher land development costs as the main reasons for the price gain. Market conditions contributed to the rise in Victoria, while the increase in Greater Sudbury and Thunder Bay—the largest in that region since May 2014—was primarily due to higher construction and land development costs.

Prices were unchanged in 7 of the 21 metropolitan areas surveyed.

New housing prices fell 0.2% in Québec, Calgary and Edmonton. Builders reported lower negotiated selling prices in Québec. Although some builders in Calgary and Edmonton reported increased construction costs, these were offset by lower negotiated selling prices and new promotional packages introduced to encourage sales.

New Housing Price Index, 12-month change

The NHPI increased 2.8% over the 12-month period ending in September.

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 (+7.1%) was the top contributor to the gain, and also recorded the largest year-over-year price increase in September among the CMAs covered by the survey.

Other notable year-over-year gains were observed in St. Catharines–Niagara (+5.3%), Vancouver (+5.2%) and Victoria (+4.2%).

Among the 21 metropolitan areas surveyed, 6 recorded year-over-year price declines in September. Saskatoon (-2.7%) and Calgary (-0.9%) posted the largest year-over-year decreases.


  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 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.

Starting with the collection of September 2016 prices, the NHPI program changed its data collection mode from a paper questionnaire to an online electronic questionnaire. The redesigned questionnaire collects additional information on house models, lot characteristics and reasons for price change.

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 New Housing Price Index for October will be released on December 8.

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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