According to Statistics Canada, the New Housing Price Index (NHPI) edged up 0.1 percent in September, following a 0.3 percent increase in August.
The census metropolitan area (CMA) of Vancouver (+0.4 percent) and the combined region of Toronto and Oshawa (+0.2 percent) were the top contributors to the national increase. Builders in both areas reported market conditions as the main reason for the advance. This was the eighth straight monthly price increase in Toronto and Oshawa, and the largest gain in Vancouver since April.
Prices rose 0.2 percent in the CMA of Ottawa–Gatineau, following four months of no change. Builders reported higher material and labor costs as the main reasons for the increase, the first in the CMA since August 2014.
New housing prices also rose 0.2 percent in the CMAs of Montréal, Kitchener–Cambridge–Waterloo, London and Regina. Builders in Montréal and Kitchener–Cambridge–Waterloo attributed the rise to market conditions, while builders in London and Regina reported higher land costs.
Prices were unchanged in 8 of the 21 metropolitan areas surveyed.
The CMAs of Charlottetown (-1.1 percent) and Saskatoon (-0.7 percent) recorded the largest price decreases in September. Builders in both CMAs reported price reductions to stimulate sales and lower negotiated selling prices. This was the largest decrease in Charlottetown since January 2006, and the largest decline in Saskatoon since May 2009.
New home prices declined 0.1 percent in both St. Catharines–Niagara and Windsor. In St. Catharines–Niagara, builders reported higher material and labor costs; however, these were offset by lower negotiated selling prices. Builders in Windsor reported lower selling prices in September, the first monthly decrease in the CMA since October 2014.