New Housing Price Index

New home prices rose sharply in April. The New Housing Price Index rose by 1.2% over the previous month to 138.2 (1997=100). This was the most significant month-over-month increase at the national level since April 1989. Compared to one year ago, contractors' selling prices have increased 8.2%.

Prices advanced in 14 of the 21 metropolitan areas surveyed. Calgary led the way once again with a monthly increase of 4.7%. Edmonton (+3.9%) Regina (+1.2%), Montréal (+1.0%) and Vancouver (+0.9%) also registered significant increases. High demand for new housing, coupled with higher material and labour costs and increased land values, were cited as the main reasons for these increases.

Other noteworthy gains were registered in Hamilton, St. Catharines–Niagara and London (+0.6% each) where favourable market conditions, higher material and labour costs and increased land values pushed prices up. Monthly increases were also noted in Ottawa–Gatineau, Toronto and Oshawa, Greater Sudbury/Grand Sudbury and Thunder Bay, Winnipeg, Saskatoon and Victoria. Of the 14 metropolitan areas showing increases, land prices rose in 8.

Four metropolitan areas registered no monthly change while Windsor (-1.4%), Kitchener (-0.4%) and St. John's (-0.1%) posted the only decreases due to competitive pricing.

On a 12-month basis, Calgary (+34.8%) had the largest increase for new homes for the seventh month in a row, followed by Edmonton (+18.6%), Winnipeg (+10.7%), Regina and Victoria (+7.7% each) and Saskatoon (+6.7%).

For more information, or to enquire about the concepts, methods or data quality of this release, contact our Client Services Section (613-951-9606, fax: 613-951-1539; infounit@statcan.ca) or Randy Sterns (613-951-8183; sterran@statcan.ca), Prices Division.