The New Housing Price Index (NHPI) was unchanged in November following a 0.1% advance in October. Monthly price increases in eight metropolitan areas were offset by decreases in five areas, resulting in no change to the Canada level index.
New Housing Price Index
The largest monthly price increase in November occurred in St. Catharines–Niagara (+0.8%), where builders reported that rising material and labour costs contributed to the price gain. This was the largest monthly price increase in St. Catharines–Niagara since December 2012, and the first increase in four months.
Prices also rose in Hamilton (+0.5%) and Calgary (+0.4%). According to builders, market conditions as well as higher list prices for new phases of development contributed to the price advance in Hamilton, while higher prices in Calgary were attributable to increasing material and labour costs.
Lower negotiated selling prices contributed to price declines in Victoria (-0.5%), as well as in Edmonton and Vancouver (both down 0.2%). Prices were also down in Ottawa–Gatineau (-0.4%) as a result of market conditions. This was the largest monthly price decrease in Ottawa–Gatineau since May 2011.
Prices were unchanged in 8 of the 21 metropolitan areas surveyed.
Calgary posts the largest year-over-year price increase
On a year-over-year basis, the NHPI rose 1.4% in the 12 months to November. The pace of annual growth in new housing prices has been steadily slowing since August.
The main contributors to the annual advance were Calgary (+6.5%), and the combined metropolitan region of Toronto and Oshawa (+1.4%). This marks the fourth consecutive month of decelerating year-over-year price growth in the Toronto and Oshawa region. Other significant year-over-year increases occurred in Winnipeg (+3.7%), St. Catharines–Niagara (+3.6%) and Regina (+3.4%).
Among the 21 metropolitan areas surveyed, Vancouver (-1.3%), Ottawa–Gatineau (-1.2%) and Victoria (-0.9%) experienced 12-month price declines. Annual prices in the Ottawa–Gatineau region have decreased for four consecutive months, following slowing growth throughout the first half of 2013.