The New Housing Price Index (NHPI) rose 0.3% in May, following a 0.2% increase in April.
New Housing Price Index
The metropolitan regions of Toronto and Oshawa, and Calgary were the top contributors to the increase in May. The impact of these regions on the overall index was slightly offset by the decrease observed in Victoria.
In Toronto and Oshawa as well as in Calgary, the rise in prices was predominantly explained by market conditions.
From April to May, the aggregated metropolitan regions of Sudbury and Thunder Bay (+1.6%) posted the largest monthly price advance, followed by Toronto and Oshawa and by Regina (both +0.5%).
In Sudbury and Thunder Bay, price increases were primarily the result of improving market conditions and higher land prices.
Higher labour costs were the main reason for the price increase in Regina.
In May, prices were unchanged in 4 of the 21 metropolitan regions surveyed.
The most significant monthly price declines were recorded in Victoria (-0.8%) and Charlottetown (-0.4%).
Builders in Victoria recorded lower negotiated selling prices in May, while in Charlottetown, builders reduced their prices to stimulate sales.
Toronto and Oshawa posts the highest year-over-year price increase
Year over year, the NHPI was up 2.4% in May, following a 2.5% increase the previous month. The main contributor to the advance was the metropolitan region of Toronto and Oshawa.
The largest year-over-year price increases were recorded in Toronto and Oshawa (+5.5%), Winnipeg (+4.4%) and Regina (+4.3%).
Other significant year-over-year increases in contractors' selling prices were observed in Québec (+3.2%) and Ottawa–Gatineau (+2.8%).
Among the 21 metropolitan regions surveyed, 3 posted 12-month price declines in May, with Victoria (-3.2%) recording the largest decrease.