According to Statistics Canada, the New Housing Price Index (NHPI) rose 0.2 percent in November, following a 0.3 percent increase in October. The gain in November was largely attributable to higher prices in the combined region of Toronto and Oshawa as well as the census metropolitan area (CMA) of Vancouver.
The combined region of Toronto and Oshawa (+0.2 percent) was the top contributor to the national increase in November, while Vancouver (+0.5 percent) recorded the largest monthly price gain. Builders in both areas cited market conditions as the main reason for the advance.
New housing prices rose 0.4 percent in Montréal, marking the largest increase in that CMA since October 2012. Builders attributed the gain to the cost of material.
St. John's, Charlottetown and the combined region of Saint John, Fredericton and Moncton all recorded price increases of 0.2 percent in November.
The gain in St. John's followed three months of no change, as builders reported higher prices for material, labor and land. In Charlottetown, builders attributed the price increase—the first following six months of flat or falling prices—to higher list prices in new phases of development. Builders in the combined region of Saint John, Fredericton and Moncton cited market conditions as the main reason for the price advance, following three months of no change.
After two consecutive months of decline, new housing prices rose 0.2 percent in St. Catharines–Niagara.
Prices were unchanged in 3 of the 21 metropolitan areas surveyed.
The CMAs of Halifax (-0.4 percent) and Saskatoon (-0.3 percent) recorded the largest price decreases in November. Builders in Halifax reported lower negotiated selling prices as the primary reason for the decline, while builders in Saskatoon lowered their prices to stimulate sales. This was the largest monthly decrease in Halifax in more than 15 years.