The New Housing Price Index (NHPI) rose 0.1% in December, following a 0.3% increase in November.
Evolution of the New Housing Price Index
The metropolitan regions of Toronto and Oshawa, and Montreal were the top contributors to the increase in December. The positive impact of these metropolitan regions on the overall index was offset in part by decreases observed in Vancouver and in Hamilton.
Between November and December, Toronto and Oshawa (+0.4%) posted the largest monthly price advance, followed by Montreal and Quebec (both +0.3%).
In Toronto and Oshawa, price increases were primarily the result of good market conditions and increased land values.
In Montreal, good market conditions were reported as the main reason for the rise in prices while in Quebec, some builders reported that higher material and labour costs contributed to the increase.
In December, prices were unchanged in 12 of the 21 metropolitan regions surveyed.
Monthly price declines were recorded in Hamilton (-0.3%) and Vancouver (-0.2%).
The declines observed in both Hamilton and Vancouver were the result of some builders reporting lower negotiated selling prices.
Year over year, the NHPI was up 2.5%, the same increase as in the previous two months. The main contributor to this advance was the metropolitan region of Toronto and Oshawa.
Toronto and Oshawa post the highest year-over-year price increase
The largest year-over-year price increases were recorded in Toronto and Oshawa (+6.3%), Regina (+5.3%) and Winnipeg (+4.6%).
Other notable year-over-year increases in contractors' selling prices were observed in Kitchener-Cambridge- Waterloo (+3.7%) and Charlottetown (+3.5%).
Among the 21 metropolitan regions surveyed, 4 posted 12- month price declines in December, with Victoria (-1.6%) posting the largest decrease.
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