Canadian House Prices Rise

Statistics Canada Press Release

Prices in Canada's new housing market continued to rise in September in response to healthy demand from home buyers.

According to the New Housing Price Index (which is based on contractors' selling prices of new homes in 21 metropolitan areas), the price of new homes rose 5.8% in September compared with the same month last year.

This was down slightly from the 6.0% annual increases registered in July and August and the 6.2% increase registered in June.

The New Housing Price Index (1997=100) reached 124.7 in September.

An active housing market, along with higher prices for building materials and labour, continued to push prices up nationally.

Victoria (+8.7%) continued to post the largest 12-month increase for new homes, followed by Winnipeg (+8.5%) and St. Catharines–Niagara (+8.1%).

On a month-over-month basis, housing prices were up 0.3%, a somewhat slower rate of increase compared with the August increase of 0.5%.

Monthly increases were posted in 16 of the 21 metropolitan areas. In Saskatoon, where builders had reported no changes in July and August, prices rose 3.4%. Contractors in several metropolitan areas, including Saskatoon, cited building materials as an important factor in explaining price increases. St. Catharines–Niagara (+1.0%) and Regina (+1.0%) posted the next highest monthly price gains after Saskatoon.

Hamilton, Montréal, Winnipeg, Edmonton, Kitchener, St. John's and Calgary also registered notable increases in hew home prices. Higher land prices were noted in Montréal, Winnipeg, Calgary and Edmonton.

Five metropolitan areas registered no monthly change and there were no monthly decreases.