Canada saw the price of new homes rise 0.3 per cent in August, the largest monthly gain since January, according to Statistics Canada’s New Housing Price Index. That comes following no change in July.
Builders reported new list prices and market conditions as the primary reasons for the increase, the agency said, with strong gains in Ontario and Alberta leading the month’s growth.
On a year-over-year basis, new home prices in the country rose 1.5 per cent in August — up slightly from a July increase of 1.4 per cent — with Calgary and the combined region of Toronto and Oshawa leading annual growth.
Prices were unchanged in seven of the 21 metropolitan areas surveyed. Here’s a rundown of new home prices across the country in August:
- New housing prices were up 0.3 per cent in Hamilton, Kitchener–Cambridge–Waterloo and Vancouver.
- In Hamilton, builders cited increased development charges and higher material and labour costs as the reasons for higher prices, which have climbed for seven consecutive months.
- The price increase in Kitchener–Cambridge–Waterloo — the largest in six months — was principally due to market conditions.
- In Vancouver — the first price increase since July 2013 — builders cited higher material and labour costs, as well as improved market conditions as the main factors contributing to the rise in prices.
- In Edmonton, new housing prices rose 0.2 per cent as builders reported higher land developments costs.
- The municipal areas of Ottawa–Gatineau, St. Catharines–Niagara and London all saw a 0.1 per cent increase in new home prices — mainly the result of higher city development charges. This was the first price increase in Ottawa–Gatineau in six months.
- In the combined area of Saint John, Fredericton and Moncton, new housing prices fell 0.3 per cent builders reduced prices to stimulate sales. This was the largest decrease in the area since February 2012.
- Prices also declined in Regina ( 0.2 per cent) and Victoria (0.1 per cent), both primarily as a result of lower negotiated selling prices. This was the first price movement in Victoria since March.