New Housing Price Index for August rises a mere 0.3 percent in Canada

The New Housing Price Index (NHPI) rose 0.3 percent in August, largely a result of higher new home prices in Ontario.

The combined region of Toronto and Oshawa was the top contributor to the increase, with prices up 0.6 percent over the previous month. Builders reported market conditions as the main reason for the gain. This marks the seventh straight month of price increases in that region.

The census metropolitan area (CMA) of Hamilton recorded the largest price increase in August, up 0.8 percent. Builders cited market conditions as the primary reason for the advance, the largest in that CMA since April 2013. Prices in Hamilton have been rising for four consecutive months.

Prices rose 0.7 percent in the CMA of St. Catharines–Niagara, following a 0.1 percent decrease the previous month. Builders reported higher material and labour costs and higher list prices as the main reasons for the increase—the largest in that CMA since February 2014.

New housing prices rose 0.2 percent in the CMAs of Montréal and London. According to builders, market conditions attributed to the rise in Montréal, while builders in London reported higher construction costs.

Prices were unchanged in 8 of the 21 metropolitan areas surveyed.

The CMAs of Québec and Regina recorded the largest price decreases in August as both fell 0.2 percent. Builders in the CMA of Québec cited market conditions as the main reason for the decline. Builders in Regina reported lowered prices to stimulate sales.

New home prices declined 0.1 percent in both Charlottetown and Victoria. Builders in Charlottetown lowered prices to encourage sales. In the CMA of Victoria, higher list prices were offset by lower negotiated selling prices. The decrease in Victoria follows three consecutive months of no price change.