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New Housing Price Index, September 2018

Released: 2018-11-08

New Housing Price Index — Canada

September 2018

0.0%

(monthly change)

New Housing Price Index — N.L.

September 2018

-0.4% decrease

(monthly change)

New Housing Price Index — P.E.I.

September 2018

-0.2% decrease

(monthly change)

New Housing Price Index — N.S.

September 2018

-0.3% decrease

(monthly change)

New Housing Price Index — N.B.

September 2018

0.0%

(monthly change)

New Housing Price Index — Que.

September 2018

0.1% increase

(monthly change)

New Housing Price Index — Ont.

September 2018

0.0%

(monthly change)

New Housing Price Index — Man.

September 2018

0.0%

(monthly change)

New Housing Price Index — Sask.

September 2018

-0.2% decrease

(monthly change)

New Housing Price Index — Alta.

September 2018

0.0%

(monthly change)

New Housing Price Index — B.C.

September 2018

0.2% increase

(monthly change)

New house prices were unchanged nationally 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 September, new home buyers in 20 of the 27 census metropolitan areas (CMAs) surveyed saw flat or decreasing prices. Increased mortgage rates, along with tighter mortgage regulations, have coincided with slowing demand for new homes across Canada.

New home prices fell the most in St. John's and Hamilton (both down 0.4%), and Halifax and Saskatoon (both down 0.3%). Builders in all four CMAs reported unfavourable market conditions as the primary reason for the price decline.

The largest price increases in September were in London (+0.5%), and Vancouver and Sherbrooke (both up 0.4%). Builders in London reported that increased construction costs were pushing up prices. In Vancouver, builders returned to list prices after some discounting in previous months. In Sherbrooke, builders reported higher prices for new phases of development.

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

New Housing Price Index, 12-month change

New house prices edged up 0.2% year over year in September, the smallest annual increase since January 2010.

Regional highlights – A tale of two housing markets in Ontario

Over the past year, new home prices have risen in the historically more affordable CMAs of Ottawa and London. For a fourth consecutive month, Ottawa (+5.1%) and London (+3.8%) had the largest 12-month gains among surveyed CMAs.

However, in Toronto and in nearby CMAs within the Greater Golden Horseshoe region, price growth has been largely muted. Year-over-year price movements ranged from a 1.2% decline in Toronto to a 1.1% increase in St. Catharines–Niagara.

Continued weakness in Alberta and Saskatchewan

In September, four of the seven CMAs reporting 12-month declines were in Alberta and Saskatchewan, with Regina (-1.9%) recording the largest decrease. Year over year, prices in Saskatchewan have been decreasing since January 2015.


  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.

Products

A data table highlighting changes in new home prices in Canada and select census metropolitan areas is available as part of the Just the Facts series.

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 October will be released on December 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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