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New Housing Price Index, April 2018

Released: 2018-06-14

New Housing Price Index — Canada

April 2018

0.0%

(monthly change)

New Housing Price Index — N.L.

April 2018

0.0%

(monthly change)

New Housing Price Index — P.E.I.

April 2018

0.0%

(monthly change)

New Housing Price Index — N.S.

April 2018

0.4% increase

(monthly change)

New Housing Price Index — N.B.

April 2018

-0.1% decrease

(monthly change)

New Housing Price Index — Que.

April 2018

0.1% increase

(monthly change)

New Housing Price Index — Ont.

April 2018

-0.2% decrease

(monthly change)

New Housing Price Index — Man.

April 2018

0.0%

(monthly change)

New Housing Price Index — Sask.

April 2018

0.3% increase

(monthly change)

New Housing Price Index — Alta.

April 2018

0.0%

(monthly change)

New Housing Price Index — B.C.

April 2018

0.0%

(monthly change)

New house prices in Canada were unchanged for a second consecutive month, despite increases in some pockets across the country.

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

New Housing Price Index, monthly change

In April, builders in 19 of the 27 census metropolitan areas (CMAs) surveyed reported flat or declining prices, which coincides with the introduction of recent tighter mortgage regulations and higher mortgage rates. The Canada-level index has seen no upward movement since December 2017.

Toronto, historically one of the pricier housing markets in the country, posted a 0.5% decline in April, its fourth consecutive monthly decrease. Builders attributed the decline in April to unfavourable market conditions, as well as lower negotiated selling prices.

New home prices in Toronto were generally unchanged from June to December 2017, followed by a series of declines in 2018. Last year, the Ontario government introduced the Fair Housing Plan which included the 15% Non-Resident Speculation Tax, as well as other measures aimed at cooling the housing market in Ontario.

In Vancouver, another high-priced Canadian housing market, new home prices have been unchanged since January 2018. In an attempt to help stabilize housing prices, in February, the government of British Columbia announced measures to address housing affordability in a comprehensive housing plan. This initiative included increasing the foreign buyers tax from 15% to 20%, and expanding its coverage to more areas.

In April, eight CMAs reported gains, led by Windsor (+1.0%) and Sherbrooke (+0.7%). Builders in both CMAs linked the gains to higher construction costs and new phases of land development.

Chart 2  Chart 2: New house prices in Canada unchanged for a second consecutive month, despite increases in some pockets across the country
New house prices in Canada unchanged for a second consecutive month, despite increases in some pockets across the country

New Housing Price Index, 12-month change

New house prices rose 1.6% year over year in April. The largest 12-month gains were registered in Vancouver (+7.1%), London (+5.8%) and Ottawa (+5.5%).

Among the six CMAs reporting declines, Saskatoon (-1.5%) recorded the largest 12-month decrease.

Toronto saw new home prices decline 0.3% year over year in April, compared with a 9.9% increase in April of last year. This was the first year-over-year decrease since October 2009.


  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 May will be released on July 12.

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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