The New Housing Price Index increased, year-over-year, by 1.5% in October, a slower pace than the 2.1% advance recorded in September and the smallest annual increase since October 1999.
Prices decreased 0.4% between September and October 2008, resulting in a New Housing Price Index of 158.1 (1997=100). This was the first monthly decrease at the Canada level since September 1998.
The largest year-over-year increases were in Regina (+22.8%) and St. John's (+22.3%). Both of these cities also registered monthly increases in October. However, both cities were down from record highs in 2008 with Regina down from its peak of 34.0% in April and St. John's down from 24.3% in July.
Chart 1
Percentage change from the same month of the previous year (cities with the largest change)
In Saskatoon, the year-over-year increase was 3.2%, once again confirming a trend of deceleration in this city. On a month-over-month basis, new housing prices decreased 1.6% as Saskatoon builders continued to report difficult market conditions.
Edmonton recorded a 12 month drop of 7.7%, which was the largest annual decline since May 1985, while Calgary recorded a year-over-year decrease of 1.6%; the largest annual decline for this metropolitan area since November 1991. Prices declined by 1.7% in Edmonton and 0.6% in Calgary from September to October 2008.
Chart 2
Percentage change from the same month of the previous year (cities with the smallest change)
On the West Coast, prices were down 0.4% in Vancouver on a year-over-year basis, the first annual drop since April 2001. Vancouver was also down 1.1% on a monthly basis. In Victoria, contractors' selling prices decreased 1.1% year-over-year, down from an annual increase of 0.2% in September.
Compared with October 2007, contractors' selling prices were 4.3% higher in Ottawa–Gatineau and 3.0% higher in Toronto and Oshawa.
In Québec, the 12-month growth rate was 5.8%, while in Montréal, prices increased 4.8%.
Available on CANSIM: table 327-0005.
Definitions, data sources and methods: survey number 2310.
The third quarter 2008 issue of Capital Expenditure Price Statistics (62-007-XWE, free) will be available in January 2009.