The New Housing Price Index (NHPI) rose 0.1% in August, following a 0.2% increase in July.
Calgary was the top contributor to the national increase, with prices rising 0.6% in August. Builders in Calgary reported that market conditions, increased material and labour costs as well as a shortage of developed land contributed to higher prices. Calgary has been a top contributor to advances in new housing prices over the past nine months.
The largest monthly price advance in August occurred in Windsor (+1.0%), where builders cited an increase in material, labour and land development costs as the primary reasons for higher prices. Prices in the region have been relatively flat over the past year, despite a couple of modest monthly advances.
New housing prices rose 0.3% in both Montréal and Saskatoon. Market conditions contributed to the price increase in Montréal, while higher prices in Saskatoon were attributed to material, labour and land development costs.
Negotiated selling prices contributed to lower prices in four metropolitan areas in August. Prices for new homes in Vancouver fell 0.3%, while Halifax posted a 0.2% decline. Both Ottawa–Gatineau and Victoria were down 0.1%.
Prices were unchanged in 9 of the 21 metropolitan areas surveyed.
On a year-over-year basis, the NHPI rose 1.8% in the 12 months to August, following similar annual increases over the previous three months.
The two main contributors to the annual advance were Calgary (+6.1%) as well as the combined metropolitan region of Toronto and Oshawa (+2.2%). Year-over-year price increases in Calgary have been generally accelerating since early 2012, while price gains have been trending downwards in the Toronto and Oshawa region over the same period.
Other significant year-over-year increases occurred in Winnipeg (+5.1%), St. Catharines–Niagara (+3.4%), Regina (+2.6%) and Hamilton (+2.4%).
Among the 21 metropolitan areas surveyed, Ottawa–Gatineau (-0.2%), Victoria (-0.9%) and Vancouver (-1.3%) experienced 12-month price declines. This marked the first year-over–year price decrease in Ottawa–Gatineau since January 1998.