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New Housing Price Index, October 2018

Released: 2018-12-13

New Housing Price Index — Canada

October 2018

0.0%

(monthly change)

New Housing Price Index — N.L.

October 2018

-0.1% decrease

(monthly change)

New Housing Price Index — P.E.I.

October 2018

-0.1% decrease

(monthly change)

New Housing Price Index — N.S.

October 2018

-0.1% decrease

(monthly change)

New Housing Price Index — N.B.

October 2018

-0.2% decrease

(monthly change)

New Housing Price Index — Que.

October 2018

0.1% increase

(monthly change)

New Housing Price Index — Ont.

October 2018

0.1% increase

(monthly change)

New Housing Price Index — Man.

October 2018

0.3% increase

(monthly change)

New Housing Price Index — Sask.

October 2018

-0.1% decrease

(monthly change)

New Housing Price Index — Alta.

October 2018

-0.1% decrease

(monthly change)

New Housing Price Index — B.C.

October 2018

0.0%

(monthly change)

New housing prices were unchanged on a national basis for a third month in a row.

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

New Housing Price Index, monthly change

In October, new home buyers in 16 of the 27 census metropolitan areas (CMAs) surveyed saw flat or lower prices. Prices at the national level have remained largely unchanged since November 2017.

New home prices in Canada's most expensive housing markets: Toronto and Vancouver

New home buyers in Toronto saw prices fall 0.1% in October, while prices were flat in Vancouver. Tighter mortgage regulations as well as provincial interventions, mostly targeting the Toronto and Vancouver housing markets, have likely contributed to the slowdown in new home prices in these historically expensive CMAs.

The pace of new home construction has also slowed in both CMAs. According to the Canada Mortgage and Housing Corporation, single-family housing starts were down year to date in October, compared with the same period in 2017 in both Toronto (-40.3%) and Vancouver (-11.9%). Single-family homes include row, single and semi-detached houses.

New home prices continue to rise in the more affordable markets of Ottawa and Windsor

The largest price increases in October were in Windsor (+0.9%) and Ottawa (+0.6%). Builders in Windsor reported that a shortage of developed land, as well as higher construction costs, contributed to the price increase. In Ottawa, builders tied the gain to favourable market conditions and higher construction costs.

A steady rise in new home prices has recently been observed in both CMAs. Since January of this year, prices have been up every month in Ottawa and have increased 8 out of the 10 months in Windsor.

Chart 2  Chart 2: New housing prices are unchanged on a national basis for a third month in a row
New housing prices are unchanged on a national basis for a third month in a row

New Housing Price Index, 12-month change

New house prices edged up 0.1% year over year in October, the smallest annual increase since January 2010.

For a fifth consecutive month, Ottawa (+4.7%) and London (+3.9%) registered the largest 12-month gains among the surveyed CMAs.

Among the eight CMAs reporting 12-month decreases in October, the largest decline was in Regina (-2.4%). On a year-over-year basis, new house prices in the CMAs surveyed in Alberta and Saskatchewan have fallen or remained flat for four consecutive months.

New product: Housing market indicators dashboard

Statistics Canada has a new dashboard, Housing Market Indicators. This web application provides access to key housing market indicators for Canada, by province and by census metropolitan area. These indicators are automatically updated with new information from monthly releases, giving users access to the latest data.


  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 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.

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 November 2018 will be released on January 10, 2019.

Products

The dashboard Housing Market Indicators is now available.

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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