New Housing Price Index (NHPI): August 2011

Calgary new home prices were up 0.2% between July & August according to Statistics Canada New Home Price Index released today. Year-over-year, Calgary’s NHPI was down -0.5%.

Nationally, the New Housing Price Index (NHPI) rose 0.1% in August, following a similar increase in July. Year-over-year, the NHPI was up 2.3% in August also following a similar increase in July.

Between July and August, Regina (+1.2%) posted the largest increase, followed by Greater Sudbury and Thunder Bay (+0.9%) as well as Saint John, Fredericton and Moncton (+0.6%).

The most significant monthly price declines were recorded in Vancouver (-0.4%) and Victoria (-0.3%) as builders recorded lower negotiated selling prices or offered promotional pricing to generate sales.

The largest year-over-year price increases were in Toronto and Oshawa as well as in Regina (both +5.1%) while the largest decrease was in Windsor (-3.2%) followed by Victoria (-1.9%)

(click to enlarge image)

Note: The New Housing Price Index measures changes over time in the selling prices of new residential houses agreed upon between the contractor and the buyer at the time of the signing of the contract. It is designed to measure the changes in the selling prices of new houses where detailed specifications pertaining to each house remain the same between two consecutive periods. The prices collected from builders and included in the index are market selling prices less value added taxes, such as the Federal Goods and Services Tax or the Harmonized Sales Tax.

The new housing price indexes for September will be released on November 9.

One response to “New Housing Price Index (NHPI): August 2011

  1. Scotia Capital forecast Canada’s NHPI increase exactly:

    The New Housing Price Index (8:30am ET) will be the sole data release this morning. Perhaps the most important influence this measure has on the Canadian economy is via the CPI as the house-only component of this indicator feeds through into the replacement cost component of the CPI.

    While recent monthly gains in the NHPI have put some upward pressure on replacement costs, this component is only 4.07% of total CPI and with an expected increase of only 0.1% in August—matching the increase in July— gains will likely be muted going forward

    Read more about CPI (Consumer Price Index) at Statistics Canada

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