March New House Prices Rise in 10 of 27 Cities

New House Prices

 

The New Housing Price Index (NHPI) rose 0.2% in March compared with the previous month. Higher new house prices in Vancouver and Toronto led the gain. Builders attributed the rise to market conditions, a shortage of developed land, and construction costs.

New house prices were up in 10 of the 27 metropolitan areas surveyed, with the largest increases in Oshawa (+1.1%) and Guelph (+0.9%). In Oshawa, builders cited higher construction costs and improving market conditions as reasons for the gain. Builders in Guelph linked higher new house prices to improving market conditions and a shortage of developed land.

Vancouver was the top contributor to the national gain, with prices up 0.7%. Builders reported market conditions as the main source of the rise. This was the first price increase in five months and the largest since May 2016.

Ottawa (+0.6%) and Windsor (+0.4%) also posted significant price gains. Builders in Ottawa reported market conditions, a shortage of developed land and higher construction costs as the key reasons for the increase, the largest since April 2011. In Windsor, builders tied the price rise to higher land development costs and improving market conditions.

In Toronto, prices edged up 0.2%, the result of favourable market conditions.

New house prices were down in three metropolitan areas and unchanged in 14.

New Housing Price Index, 12-month change

The NHPI rose 3.3% over the 12-month period ending in March, largely reflecting higher prices for new homes in Toronto (+8.4%). Other notable year-over-year increases were reported in Victoria (+6.3%), Windsor (+6.2%) and St. Catharines-Niagara (+6.0%). 

In March, six metropolitan areas recorded 12-month price declines with St. John’s (-0.7%) posting the largest decrease.

Source: Statistics Canada, http://www.statcan.gc.ca/daily-quotidien/170511/dq170511a-eng.htm

 

Related Articles


Changing Scene

  • Noramco Announces Samantha Boernsen as New Regional Sales Manager, Winnipeg

    Noramco Announces Samantha Boernsen as New Regional Sales Manager, Winnipeg

    Noramco invites you to join them in welcoming Samantha Boernsen as Regional Sales Manager, Winnipeg. Samantha brings a wealth of experience in the electrical industry, with a strong focus on lighting, marketing strategy, and customer engagement. She has built her career on connecting technical expertise with real-world application, making her a trusted partner to clients… Read More…

  • Noramco Announces Cary Pepper as New Regional Sales Manager – OEM, Mississauga

    Noramco Announces Cary Pepper as New Regional Sales Manager – OEM, Mississauga

    Noramco invites you to join them in welcoming Cary Pepper as Regional Sales Manager – OEM, Mississauga. Cary is a dynamic business leader with more than 24 years of experience driving growth and leading high-performing teams in competitive markets. She brings a proven track record of launching innovative products, consistently exceeding sales targets, and cultivating… Read More…


Peers & Profiles