The following is the text of the new house price index report for November released by Statistics Canada.
The New Housing Price Index (NHPI) rose 0.1% in November, following a 0.2% increase in October.
The combined metropolitan region of Toronto and Oshawa was the top contributor to the advance. Market conditions were the primary reason for higher prices.
The largest monthly price advance in November occurred in London (+0.6%), followed by Halifax and St. Catharines-Niagara, with both regions recording a 0.5% increase.
Increased operating costs were the main reason for the price advance in London. In Halifax, prices rose as a result of increased material costs. Builders in St. Catharines-Niagara reported new higher list prices for new phases of development.
Prices were unchanged in 4 of the 21 metropolitan regions surveyed in November. Monthly prices declined 0.5% in Victoria and 0.4% in Vancouver as a result of lower negotiated selling prices.
On a year-over-year basis, the NHPI rose 2.2% in the 12 months to November, following a 2.4% increase the previous month. The main contributor to the advance was the combined metropolitan region of Toronto and Oshawa, where the year-over- year-increase in contractors’ selling prices was 4.1%. Winnipeg was also up 4.1% for the year. Other significant year-over-year increases occurred in Regina (+3.3%) and Québec (+2.9%).
Among the 21 metropolitan regions surveyed, 4 posted 12- month price declines in November. The largest decrease was in Victoria (-2.9%).
Note to readers
The New Housing Price Index measures changes over time in the selling prices of new residential houses agreed upon between the contractor and the buyer at the time of the signing of the contract. It is designed to measure the changes in the selling prices of new houses where detailed specifications pertaining to each house remain the same between two consecutive periods. The prices collected from builders and included in the index are market selling prices less value added taxes, such as the Federal Goods and Services Tax or the Harmonized Sales Tax.
The provincial government of British Columbia introduced legislation on May 14, 2012, announcing the return to a provincial sales tax on April 1, 2013. From April 1, 2012, until March 31, 2013, there are new housing transitional rebates in place. After the transition is complete, the provincial sales tax on building materials in British Columbia will be embedded in contractors’ selling prices of new houses. These changes will be reflected in the New Housing Price Index as reported by respondents.
The indexes are not subject to revision and are not seasonally adjusted.
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