According to Statistics Canada, the New Housing Price Index (NHPI) rose 0.2 percent in November compared with the previous month. The advance was largely driven by price increases for new housing in Ontario.
Among the 21 census metropolitan areas (CMAs) surveyed, new housing prices were up in 10, down in 4 and unchanged in 7.
London and Hamilton recorded the largest price gains among the CMAs covered by the survey. Builders in both areas reported improving market conditions and higher construction costs as reasons for the increases. Builders in Kitchener–Cambridge–Waterloo cited market conditions and higher construction costs as reasons for their gain. Builders in the combined region of Toronto and Oshawa reported a shortage of developed land as the primary reason for the higher prices. In Calgary, builders tied the price increase to the introduction of new energy-efficient building codes, as well as higher land development costs.
In a year-on-year comparison, the NHPI increased 3.0 percent over the 12-month period ending in November, reflecting gains in 16 of the CMAs surveyed.