Calgary recorded the most significant monthly decline in the metropolitan regions tracked by the New Housing Price Index released by Statistics Canada today.
Breaking a string of three consecutive monthly price increases, Calgary’s index was down -0.4% between October and November 2011. Some builders in Calgary reported that they lowered their prices in November to stimulate sales. Year-over-year, Calgary prices were down -0.2%.
Canada-wide, the 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 the decreases observed in Calgary and Vancouver.Year over year, the NHPI was up 2.5% in November.
The new housing price indexes for December will be released on February 9.
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.