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New Housing Price Index, December 2019

Released: 2020-01-22

New Housing Price Index — Canada

December 2019

0.2% increase

(monthly change)

New Housing Price Index — N.L.

December 2019

0.0%

(monthly change)

New Housing Price Index — P.E.I.

December 2019

0.0%

(monthly change)

New Housing Price Index — N.S.

December 2019

0.0%

(monthly change)

New Housing Price Index — N.B.

December 2019

0.2% increase

(monthly change)

New Housing Price Index — Que.

December 2019

0.2% increase

(monthly change)

New Housing Price Index — Ont.

December 2019

0.2% increase

(monthly change)

New Housing Price Index — Man.

December 2019

0.4% increase

(monthly change)

New Housing Price Index — Sask.

December 2019

0.2% increase

(monthly change)

New Housing Price Index — Alta.

December 2019

0.2% increase

(monthly change)

New Housing Price Index — B.C.

December 2019

0.4% increase

(monthly change)

Nationally, new house prices rose 0.2% in December, the largest monthly increase for the month of December since 2009.

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

New Housing Price Index, monthly change

Prices for new houses increased the most in Ottawa (+0.6%) in December, with builders reporting market conditions and construction costs as the primary reasons for the gain. The high demand for housing, as well as low inventory levels, continued to push prices up in the region.

New house prices were down in Greater Sudbury (-0.3%) and Gatineau (-0.2%) in December. Builders reported lower negotiated selling prices as the reason for the decline in both census metropolitan areas (CMAs).

Chart 2  Chart 2: New house prices are up nationally
New house prices are up nationally

New Housing Price Index, 12-month change

New house prices at the national level rose 0.1% year over year in December, the first year-over-year increase since April 2019.

For the sixth consecutive month, the largest year-over-year price increases occurred in Ottawa (+7.2%) and Montréal (+6.6%). Ottawa has been the CMA with the largest price increases since May 2018. Additionally, this was the largest year-over-year increase in Ottawa since October 2004, and the largest in Montréal since November of the same year.

Year over year, prices for new houses fell the most in Regina (-2.4%) and Vancouver (-2.3%) in December. Lower negotiated selling prices contributed to the annual decreases in both CMAs.

Key players in the new housing market in 2019 

In 2019, new house prices increased the most in Ottawa (+5.4%) and Montréal (+3.9%), compared with 2018. Over the last year, favourable market conditions and skilled labour shortages led to higher construction costs, which contributed to the annual increases in both CMAs.

Compared with 2018, the price of new houses decreased the most in Regina (-2.6%) and Calgary (-1.7%) in 2019. Market conditions led to builders offering lower selling prices, promotions and cash rebates to stimulate sales.

New house prices in Canada's historically most expensive housing markets, Vancouver (-1.4%) and Toronto (-0.9%), were down in 2019 compared with a year earlier, in the wake of policy measures put in place to cool the real estate markets in both CMAs. However, demand in these markets rebounded over the last few months of 2019.


  Note to readers

The New Housing Price Index (NHPI) 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: singles, semi-detached, 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 census metropolitan areas (CMAs).

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.

In addition to its monthly release, the NHPI has also been integrated into the Residential Property Price Index (RPPI). The RPPI is a quarterly series that measures changes over time in the prices of residential properties for Montréal, Ottawa, Toronto, Calgary, Vancouver and Victoria. An aggregate for these CMAs is also available. The RPPI provides, for the first time, a price index for all components of the housing real estate market―new and resale—in addition to a breakdown between houses and condominium apartments.

Products

Statistics Canada has an interactive NHPI dashboard, which allows users to visualize statistics on new housing prices.

The Residential Property Price Index (RPPI) Methodology is available. This document gives the details of the methodology used to calculate the New Housing Price Index, the New Condominium Apartment Price Index, and the Resale Residential Property Price Index, and of how these indexes are compiled to form the RPPI.

The infographic "What is happening to the prices of new houses in Canada?"—which is part of the series Statistics Canada — Infographics (Catalogue number11-627-M)—looks at recent trends in new home prices for select census metropolitan areas (CMAs) surveyed.

Statistics Canada has a Housing Market Indicators Dashboard, which provides access to key housing market indicators for Canada, by province and by CMA.

For more information on the topic of housing, visit the Housing Statistics Portal.

The video "Producer Price Indexes" is available on the Statistics Canada Training Institute webpage. It provides an introduction to Statistics Canada's producer price indexes—what they are, how they are made and what they are used for.

Statistics Canada has launched the Producer Price Indexes Portal as part of a suite of portals for prices and price indexes. This web page provides Canadians with a single point of access to a variety of statistics and measures related to producer prices. The portal offers an array of information on topics such as manufacturing, construction, professional services, distributive trades and financial services. The portal will be continually updated as new information becomes available.

Next release

The New Housing Price Index (NHPI) for January will be released on February 20.

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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