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New Housing Price Index, March 2018

Released: 2018-05-10

New Housing Price Index — Canada

March 2018

0.0%

(monthly change)

New Housing Price Index — N.L.

March 2018

0.0%

(monthly change)

New Housing Price Index — P.E.I.

March 2018

0.2% increase

(monthly change)

New Housing Price Index — N.S.

March 2018

0.5% increase

(monthly change)

New Housing Price Index — N.B.

March 2018

0.0%

(monthly change)

New Housing Price Index — Que.

March 2018

0.0%

(monthly change)

New Housing Price Index — Ont.

March 2018

0.0%

(monthly change)

New Housing Price Index — Man.

March 2018

0.1% increase

(monthly change)

New Housing Price Index — Sask.

March 2018

0.0%

(monthly change)

New Housing Price Index — Alta.

March 2018

-0.2% decrease

(monthly change)

New Housing Price Index — B.C.

March 2018

0.1% increase

(monthly change)

New house prices were unchanged in Canada in March despite growth in some markets.

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

New Housing Price Index, monthly change

In March, new house prices for Canada were unchanged, reflecting mixed results across the country. Rising prices in 13 census metropolitan areas (CMAs) were offset by flat or declining prices in the other 14 surveyed CMAs.

Favourable market conditions had Ottawa builders reporting a 1.3% increase in March, the largest price gain among surveyed CMAs. This was the sixth consecutive rise and the largest since April 2011. According to the Canada Mortgage and Housing Corporation, new single-family home completions in Ottawa grew 4.1% over the 12 months ending in March 2018 compared with the same period for 2017. Despite new construction, the inventory of completed and unsold single-family homes was lower in March 2018 compared with the same month a year earlier. Single-family homes include row, single, and semi-detached houses.

Higher demand and prices for new housing in the Ottawa market may, in part, reflect growth in full-time employment and population, as well as tightness in the resale market. According to the Canadian Real Estate Association, new listings were down 7.4% in March 2018 compared with the same period in 2017.

Other notable increases in new home prices were observed in Victoria (+1.2%) and London (+0.7%). Builders in these CMAs also attributed the rise to favourable market conditions.

The largest observed price decline was in Calgary (-0.4%), where builders linked the decrease to weak market conditions and lower negotiated selling prices.

New home buyers in Toronto saw prices dip 0.3% in March, following a 0.6% decrease in February. Builders linked the decline to lower negotiated selling prices and unfavourable market conditions.

Vancouver, one of the most expensive housing markets, saw no change in prices for the third consecutive month.

Chart 2  Chart 2: New house prices were unchanged in Canada in March despite growth in some markets
New house prices were unchanged in Canada in March despite growth in some markets

New Housing Price Index, 12-month change

New house prices rose 2.4% year over year in March. Vancouver (+8.4%), London (+7.7%) and Ottawa (+5.8%) had the largest 12-month gains.

New house prices in Toronto increased 2.3% year over year, the smallest increase in that CMA since April 2015.

Among the five CMAs reporting declines, Saskatoon (-2.0%) recorded the largest 12-month decrease.


  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.

A Historical Timeline of Canadian Producer Price Statistics

"A Historical Timeline of Canadian Producer Price Statistics," which is part of the Prices Analytical Series (Catalogue number62F0014M), 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 (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 New Housing Price Index for April will be released on June 14.

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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