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New Housing Price Index, August 2018

Released: 2018-10-11

New Housing Price Index — Canada

August 2018

0.0%

(monthly change)

New Housing Price Index — N.L.

August 2018

0.0%

(monthly change)

New Housing Price Index — P.E.I.

August 2018

0.0%

(monthly change)

New Housing Price Index — N.S.

August 2018

0.0%

(monthly change)

New Housing Price Index — N.B.

August 2018

0.2% increase

(monthly change)

New Housing Price Index — Que.

August 2018

0.3% increase

(monthly change)

New Housing Price Index — Ont.

August 2018

0.1% increase

(monthly change)

New Housing Price Index — Man.

August 2018

0.1% increase

(monthly change)

New Housing Price Index — Sask.

August 2018

-0.2% decrease

(monthly change)

New Housing Price Index — Alta.

August 2018

-0.5% decrease

(monthly change)

New Housing Price Index — B.C.

August 2018

-0.1% decrease

(monthly change)

New house prices at the national level were unchanged, despite growth in some markets.

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

New Housing Price Index, monthly change

In August, builders in 18 of the 27 census metropolitan areas (CMAs) surveyed reported flat or decreasing prices. The Canada-level index stood at 103.3 in August and has not risen above that mark since November 2017. Mortgage rate increases, along with tighter mortgage regulations, are likely contributing to the flatness observed across Canada.

Ottawa's new housing market (+0.6%) registered the largest month-over-month gain in August. This was the 11th consecutive monthly price rise in that CMA, coinciding with an increasingly tight resale market. According to the Canadian Real Estate Association, new listings were down 8.5% in August compared with the same period in 2017.

Weakness in the housing markets in Alberta and Saskatchewan continued in August. New house prices declined in Regina (-0.7%), Edmonton (-0.5%) and Calgary (-0.4%), while prices in Saskatoon were unchanged. According to the Canada Mortgage and Housing Corporation, the inventory of newly completed and unsold single-family dwellings rose in all four CMAs—ranging from 11.4% in Saskatoon to 34.4% in Calgary—in August, compared with the same month a year earlier. Single-family dwellings include row, single, and semi-detached houses.

Chart 2  Chart 2: New house prices at the national level are unchanged, despite growth in some markets
New house prices at the national level are unchanged, despite growth in some markets

New Housing Price Index, 12-month change

New house prices rose 0.4% year over year in August, with annual price advances gradually slowing since October 2017.

The largest 12-month gains in August were in Ottawa (+4.9%) and London (+3.6%). Four out of the five CMAs reporting 12-month declines were in Alberta and Saskatchewan, with Regina (-2.1%) recording the largest 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.

Article: Recent trends in new house prices in the Greater Golden Horseshoe region

An article highlighting recent trends in new house prices in the Greater Golden Horseshoe region is available in the publication Prices Analytical Series (Catalogue number62F0014M).

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 September will be released on November 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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