According to Statistics Canada, the New Housing Price Index (NHPI) rose 0.2 percent in May, following a 0.1 percent increase in April.
The combined region of Toronto and Oshawa (+0.5 percent) was the top contributor, recording the largest monthly price advance among the census metropolitan areas (CMAs) covered by the survey. Builders reported market conditions and higher land development costs as the primary reasons behind the gain, the largest in the region since April 2014.
The CMAs of Hamilton and Saskatoon both recorded 0.4 percent price increases in May. According to builders in Hamilton, higher land development costs contributed to the gain. Builders in Saskatoon cited market conditions as the main reason for the price increase. New home prices also increased in Windsor (+0.3 percent), following six straight months of no change. Builders reported market conditions as the main reason for the rise in May.
Prices were unchanged in 7 of the 21 metropolitan areas surveyed.
Among the 21 metropolitan areas surveyed, 6 posted year-over-year price declines in May: Regina (-1.8 percent), Victoria (-1.5 percent), Ottawa–Gatineau (-1.1 percent), the combined metropolitan region of Saint John, Fredericton and Moncton (-0.8 percent), as well as Montréal and Québec (both down 0.2 percent). This was the largest annual price decrease in Québec since November 1998.