The New Housing Price Index (NHPI) rose 0.3% in April, following a 0.2% increase in March. This was the largest monthly advance since October and was mainly driven by new housing prices in Ontario.
Of the metropolitan areas covered by the index, the top contributor to the national increase in April was the combined region of Toronto and Oshawa (+0.7%). Builders cited market conditions as the main reason for the advance.
The largest monthly price gains in April were observed in Kitchener–Cambridge–Waterloo and Victoria (both +0.8%). Builders in both metropolitan areas reported market conditions as the primary reason for the increases. This was the largest monthly price advance in Victoria since May 2007, and the largest in Kitchener–Cambridge–Waterloo since June 2012.
Other significant price gains were observed in St. Catharines–Niagara (+0.7%) and Vancouver (+0.2%). Builders in St. Catharines–Niagara reported higher material and labour costs as the main reasons for the rise, while builders in Vancouver cited market conditions.
Prices were unchanged in 8 of the 21 metropolitan areas surveyed. New home prices have been flat in Edmonton, and unchanged or falling in Calgary for five consecutive months.
New housing prices fell 0.2% in Saskatoon and in Windsor. Builders in both metropolitan areas cited market conditions as the main reason for the decreases. Prices have declined in Saskatoon for eight consecutive months.
New Housing Price Index, 12-month change
The NHPI increased 2.1% over the 12-month period ending in April, the largest advance at the national level since February 2013.
The combined metropolitan region of Toronto and Oshawa (+4.9%) was the top contributor, recording the largest 12-month price increase in April. This was the largest year-over-year price gain in the region since October 2012.
Other notable increases were observed in Vancouver (+3.9%), Hamilton (+3.3%), St. Catharines–Niagara (+2.7%), London (+2.2%), Victoria (+1.3%) and Regina (+0.6%). Year over year, new home prices in London have risen for four consecutive months. This was the largest 12-month price advance in Victoria since April 2008, and the first in Regina since October 2014.
Among the 21 metropolitan areas surveyed, 5 posted year-over-year price declines in April: Saskatoon (-2.4%), Québec (-0.8%), Calgary (-0.5%), Ottawa–Gatineau (-0.1%) and Charlottetown (-0.1%).