New House Prices Up Slightly in May
July 14, 2017
Toronto and Vancouver were largely responsible for a 0.7% monthly rise in new house prices in Canada in May.
Toronto was the largest contributor to the national gain, rising 1.1% from April to May. Builders linked higher prices to market conditions, a shortage of developed land and higher construction costs.
Prices for new houses in Vancouver rose for a third consecutive month, up 2.2% and the largest increase for this census metropolitan area since May 2007. Builders cited favourable market conditions as the main reason for the gain.
Builders in Guelph (+1.7%), London (+1.5%) and St. Catharines–Niagara (+0.9%) also reported market conditions as the primary driver of higher new house prices.
Prices were down in five metropolitan areas and unchanged in nine.
New Housing Price Index, 12-month change
New house prices in Canada rose 3.8% over the 12-month period ending in May, led by a 9.0% increase in Toronto.
Other notable year-over-year gains were in the Southern Ontario communities of St. Catharines–Niagara (+7.2%), Kitchener-Cambridge-Waterloo (+6.5%), and London (+6.5%). Prices were down in six metropolitan areas, with Calgary (-0.9%) posting the largest decrease.
Source: Statistics Canada, http://www.statcan.gc.ca/daily-quotidien/170713/dq170713b-eng.htm.
