The New Housing Price Index (NHPI) rose 0.2% in October, following a similar increase in September.
Evolution of the New Housing Price Index
The metropolitan regions of Toronto and Oshawa, and Edmonton were the top contributors to the increase in October. The positive impact of these metropolitan regions on the overall index was offset in part by decreases observed in Vancouver and Victoria.
Between September and October, Edmonton (+0.6%) posted the largest monthly price advance, followed by Toronto and Oshawa (+0.4%).
In Edmonton, price increases were primarily the result of higher material and labour costs as well as higher land values. In Toronto and Oshawa, some builders cited good market conditions as the main reason for their price increases.
In October, prices were unchanged in 9 of the 21 metropolitan regions surveyed.
The most significant monthly price declines were recorded in Victoria (-0.6%) and Saskatoon (-0.3%).
Some builders in Victoria reported that the primary reason for their price decreases was having lowered their prices to stimulate sales.
In Saskatoon, a few builders reported reducing their prices because of slower market conditions. These reductions were partially offset by increases in material costs.
Year over year, the NHPI was up 2.5% in October. The main contributor to this advance was the metropolitan region of Toronto and Oshawa.
The largest year-over-year price increases were in Toronto and Oshawa, and in Winnipeg (both up 5.6%).
Compared with October 2010, contractors' selling prices were also higher in Regina (+5.1%) and St. John's (+4.1%).
Among the 21 metropolitan regions surveyed, 4 posted 12-month price declines in October, led by Windsor (-3.3%) and Victoria (-1.9%).