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New Housing Price Index, January 2017

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Released: 2017-03-09

New Housing Price Index — Canada

January 2017

0.1% increase

(monthly change)

New Housing Price Index — N.L.

January 2017

-0.4% decrease

(monthly change)

New Housing Price Index — P.E.I.

January 2017

0.0%

(monthly change)

New Housing Price Index — N.S.

January 2017

0.2% increase

(monthly change)

New Housing Price Index — N.B.

January 2017

0.2% increase

(monthly change)

New Housing Price Index — Que.

January 2017

0.1% increase

(monthly change)

New Housing Price Index — Ont.

January 2017

0.3% increase

(monthly change)

New Housing Price Index — Man.

January 2017

0.3% increase

(monthly change)

New Housing Price Index — Sask.

January 2017

-0.1% decrease

(monthly change)

New Housing Price Index — Alta.

January 2017

0.0%

(monthly change)

New Housing Price Index — B.C.

January 2017

-0.1% decrease

(monthly change)

The New Housing Price Index (NHPI) edged up 0.1% in January compared with the previous month. The increase was largely attributable to new housing prices in Ontario.

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

New Housing Price Index, monthly change

Among the 27 metropolitan areas surveyed, new housing prices were up in 14, down in 7 and unchanged in 6.

Kitchener–Cambridge–Waterloo (+1.0%) recorded the biggest price gain. Builders in the region cited a shortage of developed land as the reason for the rise, the largest since June 2012.

Other significant price increases were observed in St. Catharines–Niagara (+0.9%) and London (+0.9%). In St. Catharines–Niagara, builders reported higher construction costs and improving market conditions as reasons for the rise. Builders in London tied the gains to higher construction costs.

Toronto was the top contributor to the national increase, recording a 0.2% gain in January. Higher land prices were somewhat offset by lower negotiated selling prices and bonus packages offered by builders to generate sales.

The largest monthly price decreases were recorded in Greater Sudbury (-0.8%) and St. John's (-0.4%). In both regions, the primary reason for the declines was lower negotiated selling prices.

New Housing Price Index, 12-month change

The NHPI increased 3.1% over the 12-month period ending in January.

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

Toronto was the top contributor to the gain, and also recorded the largest year-over-year price increase (+8.0%) among the metropolitan areas surveyed.

Other notable year-over-year gains were observed in St. Catharines–Niagara (+6.5%), Windsor (+5.7%), Victoria (+5.5%) and Kitchener–Cambridge–Waterloo (+5.2%).

In January, five metropolitan areas recorded year-over-year price declines, with Saskatoon (-1.2%) and Regina (-1.0%) posting the largest decreases.


  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 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.

Changes to the New Housing Price Index

With the release of the January 2017 NHPI data, a number of important changes have been introduced to increase the relevance of the index series. The NHPI basket has been updated with new weights for the 2017 series and its coverage has been expanded to include four new census metropolitan areas (CMAs): Kelowna, British Columbia; Guelph, Ontario; Trois-Rivières, Quebec; and Sherbrooke, Quebec. The weights used for the 2017 series are based on a price-adjusted three-year average of the value of building completions for each metropolitan area for 2014 to 2016.

Data for periods prior to January 2017 have been obtained by linking the new NHPI series, where possible, with indexes in CANSIM table 327-0046.

For the first time, separate series have been published for Toronto, Oshawa, Ottawa–Gatineau (Ontario part), Ottawa–Gatineau (Quebec part) and Greater Sudbury. The new indexes for Toronto, Ottawa and Greater Sudbury have been linked to those previously published for the following combined cities: Toronto and Oshawa; Ottawa–Gatineau (Ontario/Quebec); and Greater Sudbury and Thunder Bay respectively. A combined Toronto and Oshawa index is available to users upon request for reference year 2017. Thunder Bay is no longer included in the NHPI.

The index base period, for which the NHPI equals 100, is now December 2016.

CANSIM tables 327-0046 and 327-0050 have been archived and replaced by tables 327-0056 and 327-0057 respectively.

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), 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 February will be released on April 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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