The New Housing Price Index (NHPI) rose 0.4% in May following a 0.3% advance in April. Toronto and Oshawa as well as Montréal were the top contributors to the NHPI increase in May.
Between April and May, prices increased the most in Regina (+1.7%) followed by Kitchener–Cambridge–Waterloo (+1.0%) as well as Toronto and Oshawa (+0.9%).
In Regina, the rise in prices was mostly a result of increased material, labour, and land development costs. According to builders in Kitchener–Cambridge–Waterloo and in Toronto and Oshawa, the price increases were mainly a result of competitive market conditions.
In May, prices remained unchanged in 7 of the 21 metropolitan regions surveyed.
The most significant monthly price decline was recorded in Ottawa–Gatineau (-0.7%), as some builders offered promotional pricing or free upgrade packages to generate sales.
Year over year, the NHPI was up 1.9% in May following an identical increase in April. The main contributors to the advance in May were the metropolitan regions of Toronto and Oshawa as well as Montréal.
The largest year-over-year price increase was in St. John's (+4.7%) followed by Toronto and Oshawa (+4.3%).
Compared with May 2010, contractors' selling prices were also higher in Winnipeg (+4.1%), Kitchener–Cambridge–Waterloo (+3.8%), Montréal (+3.6%) and Regina (+3.4%).
Among the 21 metropolitan regions surveyed, 6 posted 12-month price declines in May, led by Windsor (-4.4%) and Victoria (-1.7%).
© Statistics Canada
- Thursday, July 7, 2011