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New Housing Price Index, September 2021

Released: 2021-10-21

New Housing Price Index — Canada

September 2021

0.4% increase

(monthly change)

New Housing Price Index — N.L.

September 2021

-0.5% decrease

(monthly change)

New Housing Price Index — P.E.I.

September 2021

-0.1% decrease

(monthly change)

New Housing Price Index — N.S.

September 2021

0.0%

(monthly change)

New Housing Price Index — N.B.

September 2021

0.0%

(monthly change)

New Housing Price Index — Que.

September 2021

1.4% increase

(monthly change)

New Housing Price Index — Ont.

September 2021

0.2% increase

(monthly change)

New Housing Price Index — Man.

September 2021

0.2% increase

(monthly change)

New Housing Price Index — Sask.

September 2021

-0.6% decrease

(monthly change)

New Housing Price Index — Alta.

September 2021

-0.1% decrease

(monthly change)

New Housing Price Index — B.C.

September 2021

0.9% increase

(monthly change)

Nationally, prices for new homes increased 0.4% in September, with prices up in 13 of the 27 census metropolitan areas (CMAs) surveyed. Five CMAs saw a decline in new home prices, the largest number of CMAs with a price decrease since March 2020. Prices were unchanged in the remaining CMAs.

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

New Housing Price Index, monthly change

Windsor (+1.9%) reported the largest monthly change in new home prices in September. New home prices also increased in Oshawa (+1.8%) and Victoria (+1.7%). All three of these CMAs have been experiencing sustained low active listings—sales activity was lower in August 2021 than in August 2020. However, the strong demand for new homes continued to push prices up.

New home prices continued to rise in Montréal (+1.7%) in September. The Quebec Professional Association of Real Estate Brokers reported that prices continued to increase despite a slowdown in sales activity, due to a lack of active listings and continued demand in the resale market. As a result, a rise in pre-sale activity in the new construction market was observed, diverting some of the demand from the resale market while putting upward pressure on new home prices.

Decreases in new home prices were led by Saskatoon (-0.9%). The Saskatchewan Realtors Association reported a recent shift to more balanced conditions between supply and demand in the province, easing some of the strain on prices. The MLS Home Price Index benchmark price for resale homes in Saskatoon decreased 1.0% from August, down to $326,100.

New Housing Price Index, 12-month change

Nationally, new home prices rose 11.3% year over year in September.

New home prices were up in all 27 markets surveyed on a year-over-year basis, with the largest gains in Kitchener–Cambridge–Waterloo (+26.5%), Ottawa (+25.3%) and Windsor (+22.9%).

Chart 2  Chart 2: New house prices rise at the national level
New house prices rise at the national level


  Note to readers

The New Housing Price Index (NHPI) measures changes over time in the selling prices of new residential houses. The prices are those agreed upon between the contractor and the buyer at the time the contract is signed. The detailed specifications for each new house remain the same between two consecutive periods.

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 and the provincial harmonized sales tax.

The survey covers the following dwelling types: new single homes, semi-detached homes and townhomes (row or garden homes). The index is available at the national and provincial levels and for 27 census metropolitan areas (CMAs).

The index is not subject to revision and is not seasonally adjusted.

In addition to this monthly release, the NHPI has also been integrated into the Residential Property Price Index (see Methodology of 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 six CMAs is also available. The RPPI provides 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

The article "The resilience and strength of the new housing market during the pandemic" examines the changes in new home prices in Canada for the 27 surveyed CMAs captured in the NHPI. It compares the ranking of cities based on home prices six months into the pandemic (August 2020 compared with February 2020).

The article "Price trends and outlook in key Canadian housing markets" looks at where the housing market was at the onset of the COVID-19 pandemic, sheds light on what has happened since then and explores the challenges of the Canadian market going forward.

The infographic "The impact of COVID-19 on Key Housing Markets," part of the series Statistics Canada—Infographics (Catalogue number11-627-M), is available. It provides an outlook on the housing market before, during and after the onset of the COVID-19 pandemic.

The "New Housing Price Index: Interactive Dashboard," which allows users to visualize statistics on new housing prices, is available.

The "Housing Market Indicators" dashboard, which provides access to key housing market indicators for Canada, by province and by CMA, is also available.

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 web page. It provides an introduction to Statistics Canada's Producer Price Indexes—what they are, how they are compiled, and what they are used for.

Statistics Canada launched the Producer Price Indexes Portal as part of a suite of portals for prices and price indexes. It provides users with a single point of access to a wide variety of statistics and measures related to producer prices.

Next release

The New Housing Price Index for October will be released on November 19, 2021.

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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