Jan 12 The New Housing Price Index (NHPI) rose 0.3% in November, following a 0.2% increase in October.
The metropolitan regions of Toronto and Oshawa, and Montréal were the top contributors to the increase in November. The positive impact of these metropolitan regions on the overall index was offset in part by decreases observed in Calgary and Vancouver.
Between October and November, Windsor (+2.0%) posted the largest monthly price advance, followed by Saskatoon (+1.2%). In Windsor, price increases were primarily the result of higher material costs and improved market conditions. This was the largest month-over-month price increase for this metropolitan region since November 1996 (+3.0%).
In Saskatoon, higher material and labour costs were the main reasons for the price increases.
In November, prices were unchanged in 6 of the 21 metropolitan regions surveyed.
The most significant monthly price declines were recorded in Calgary (-0.4%), Vancouver (-0.3%) and the aggregated metropolitan regions of Greater Sudbury and Thunder Bay (-0.3%)a.
Following three consecutive monthly price increases, some builders in Calgary reported that they lowered their prices in November to stimulate sales.
In Vancouver, a few builders offered promotional pricing while in Greater Sudbury and Thunder Bay, some builders indicated that they lowered their prices to remain competitive.
Year over year, the NHPI was up 2.5% in November. The main contributor to this advance was the metropolitan region of Toronto and Oshawa.
The largest year-over-year price increases were recorded in Toronto and Oshawa (+6.2%), Winnipeg (+5.8%) and Regina (+5.3%).
Compared with November 2010, contractors’ selling prices were also higher in Kitchener– Cambridge– Waterloo (+3.6%) and Charlottetown (+3.5%).
Among the 21 metropolitan regions surveyed, 4 posted 12-month price declines in November, led by Victoria (-1.7%).
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