According to Statistics Canada, the New Housing Price Index (NHPI) rose 0.1 percent in June, following a 0.7 percent increase in May. The advance, driven mainly by new housing prices in Toronto and Oshawa and Vancouver, was moderated by decreases in Calgary and Edmonton.
The combined region of Toronto and Oshawa (+0.5 percent) was the top contributor to the national gain among the census metropolitan areas covered by the survey. Builders reported higher labor costs, market conditions and new list prices as the reasons for the increase. New house prices in Vancouver advanced 0.4 percent, reflecting market conditions.
Prices were unchanged in 8 of the 21 metropolitan areas surveyed.
New housing prices fell in Calgary (-0.5 percent), Edmonton (-0.4 percent) and Saskatoon (-0.2 percent) in June. Builders in Calgary offered promotional prices to stimulate sales, while builders in Edmonton and Saskatoon reported lower negotiated selling prices. The decline in Edmonton followed six consecutive months of unchanged prices.
The NHPI increased 2.5 percent over the 12-month period ending in June. Among the 21 metropolitan areas surveyed, 7 recorded year-over-year price declines in June. Saskatoon (-2.7 percent) and Calgary (-1.0 percent) posted the largest decreases.