New Housing Price Rise Marginally in October

Economy Housing 1

December 17, 2015

The New Housing Price Index (NHPI) rose 0.3% in October, following a 0.1% increase in September. The gain was largely attributable to higher new home prices in Ontario. Ten of the 21 metropolitan areas surveyed reported no price changes.

Chart 1: New Housing Price Index

Economy Housing 2

 

 

 

 

 

 

 

 

 

 

 

 

The combined region of Toronto and Oshawa (+0.5%) was the top contributor to the increase, recording the largest monthly price advance among the census metropolitan areas (CMAs) covered by the survey. Market conditions and the higher cost of land were reported by some builders as the reasons for the increase.

Prices rose 0.4% in Victoria, as builders cited higher list prices for homes in new phases of development. This was the first monthly price increase in Victoria since April 2013.

New housing prices rose 0.3% in the CMAs of Hamilton and Edmonton. Builders in Hamilton attributed the rise to market conditions, while builders in Edmonton reported higher prices to offset the cost of new building code regulations. This was the largest monthly increase in Edmonton since May 2014 and followed three consecutive months of no change.

Vancouver recorded a 0.2% price increase in October, as builders reported higher prices because of market conditions and increased material and labour costs. New home prices in Vancouver have been rising steadily for five months.
Prices were unchanged in 10 of the 21 metropolitan areas surveyed.

New housing prices in Calgary were unchanged for the third consecutive month. Builders reported that price increases to cover the cost of new building code regulations were offset by lower negotiated selling prices.

The CMAs of Saskatoon (-0.5%) and St. Catharines–Niagara (-0.3%) recorded the largest price decreases in October. Builders in both CMAs reported lower negotiated selling prices as the primary reason for the decline. This was the second consecutive monthly decrease in both areas, and the largest in St. Catharines–Niagara since October 2014.

New Housing Price Index, 12-month change

The NHPI increased 1.5% over the 12-month period ending in October. This was the largest year-over-year increase at the national level since December 2014.

Chart 2: 12-month price changes in metropolitan regions across Canada
Economy Housing 3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The combined metropolitan region of Toronto and Oshawa (+4.0%) was the top contributor, recording the largest 12-month price increase in October. This was the largest year-over-year gain in the region since January 2013.

Other notable increases were observed in Hamilton (+3.6%), Winnipeg (+1.6%), Vancouver (+1.6%), Kitchener–Cambridge–Waterloo (+1.2%) and London (+1.1%).

Among the 21 metropolitan areas surveyed, 7 posted year-over-year price declines in October: Regina (-1.6%), Saskatoon (-1.1%), Calgary (-0.6%), Québec (-0.6%), Victoria (-0.5%), Ottawa–Gatineau (-0.4%) and Charlottetown (-0.1%). This was the largest year-over-year decrease in Saskatoon since January 2010, and the smallest year-over-year decline in Victoria since August 2010.

Source: Statistics Canada, www.statcan.gc.ca/daily-quotidien/151210/dq151210b-eng.htm.

 

Related Articles


Latest Articles

  • Maximizing Excel: Practical Use Cases for Preconstruction

    Maximizing Excel: Practical Use Cases for Preconstruction

    November 8, 2024 By Melvin Newman Excel is a powerful and flexible tool that can enhance efficiency in electrical construction estimating.  Spreadsheets, like those in Excel, consist of a grid of “cells” where each cell can hold various types of data. Originating from mainframe computers in the 1960s and later developed for Apple computers in… Read More…

  • The Non-Residential Sector Declines in All Three Components Despite Sustained Industrial Permit Level

    The Non-Residential Sector Declines in All Three Components Despite Sustained Industrial Permit Level

    November 4, 2024 The total value of building permits in Canada decreased by $858.1 million (-7.0%) to $11.5 billion in August, following a strong July during which construction intentions rose sharply (+20.8%). The residential and non-residential sectors contributed to the decrease in August. On a constant dollar basis (2017=100), the total value of building permits decreased 7.6% in… Read More…

  • A Slight Decrease in Residential Building Construction for August

    A Slight Decrease in Residential Building Construction for August

    November 4, 2024 Investment in building construction edged up 0.2% to $21.0 billion in August, after a 1.6% decrease in July. The residential sector edged down (-0.1%) to $14.6 billion, while the non-residential sector was up 1.0% to $6.4 billion. Year over year, investment in building construction grew 7.2% in August. On a constant dollar basis (2017=100), investment in building construction was… Read More…

  • When a Familiar Door Closes

    When a Familiar Door Closes

    November 4, 2024 By Keith Sones, seasoned utility industry executive Most of the articles I’ve written have been based on personal experiences, many of them occurring decades ago, which eventually translate into helpful life lessons. The years allow the events to marinate in a savoury stew of time and reflection, clarity never coming immediately, or even… Read More…


Changing Scene

  • Ontario Streamlining Pathways for Veterans into Skilled Trades

    Ontario Streamlining Pathways for Veterans into Skilled Trades

    November 8, 2024 The Ontario government is making it easier for Canadian Armed Forces (CAF) members, their spouses and veterans to start careers in the skilled trades. The province is also investing $2.4 million through the Skills Development Fund (SDF) to provide free training for CAF members and veterans in tech and cybersecurity careers. These initiatives… Read More…

  • Electric Avenue Partners with Rexel Atlantic to Expand EV Charging Solutions Across the Region

    Electric Avenue Partners with Rexel Atlantic to Expand EV Charging Solutions Across the Region

    November 8, 2024 Electric Avenue Manufacturing is pleased to announce a new distribution partnership with Rexel Atlantic. This strategic alliance will bring Electric Avenue’s advanced EV charging solutions to a broader audience, delivering convenience and quality to residential, commercial, and industrial sectors throughout the Atlantic region. Through this collaboration, Rexel Atlantic will offer Electric Avenue’s full… Read More…

  • BJ Take Rebrands as BJ Take Lighting

    November 8, 2024 BJ Take is an acronym chosen by the company’s founders, so they would not lose focus of why they were starting their company. The name stands for the Buma familt name and Ed and MaryAnn Buma’s five children. Now in its second-generation of family ownership, BJ Take has rebranded to BJ Take… Read More…

  • Government of Canada Invests $10.45M to Accelerate Residential Construction in Quebec

    Government of Canada Invests $10.45M to Accelerate Residential Construction in Quebec

    November 8, 2024 To better meet the evolving needs of all regions across the country, the Government of Canada yesterday launched the Regional Homebuilding Innovation Initiative (RHII). Delivered by Canada’s regional development agencies (RDAs), the RHII supports manufacturers in the residential construction sector in order to accelerate innovation in this industry and transform how homes will be built in the future. The federal government… Read More…