According to Statistics Canada, the New Housing Price Index (NHPI) rose 0.3 percent in October, following a 0.1 percent increase in September. The gain was largely attributable to higher new home prices in Ontario.
The combined region of Toronto and Oshawa (+0.5 percent) 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 percent 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 percent 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 percent price increase in October, as builders reported higher prices because of market conditions and increased material and labor costs. New home prices in Vancouver have been rising steadily for five months.