New Housing Price Index (NHPI): December 2011

The price of a new Calgary home was up between November and December but down from the previous year according to Statistics Canada NHPI released today.  Calgary’s index was up +0.2% in December but down -0.1% year-over-year.

Nationally, the index rose 0.1% in December and up 2.5% y/y.

The largest year-over-year price increases were recorded in Toronto and Oshawa (+6.3%), Regina (+5.3%) and Winnipeg (+4.6%).

Among the 21 metropolitan regions surveyed, 4 posted 12-month price declines in December, with Victoria (-1.6%) posting the largest decrease.

Statistics Canada reports that:

  •  Toronto & Oshawa: price increases were primarily the result of good market conditions and increased land values.
  • Montréal:  good market conditions were reported as the main reason for the rise in prices while in Québec, some builders reported that higher material and labour costs contributed to the increase.
  • Hamilton & Vancouver: declines were the result of some builders reporting lower negotiated selling prices.
New Housing Price Index: Dec 2011

Source: Statistics Canada (click to enlarge image)

2 responses to “New Housing Price Index (NHPI): December 2011

  1. Alberta’s new home prices steady

    February 9, 2012

    EDMONTON, AB, Feb. 9, 2012/ Troy Media/ – Analysts of Alberta’s residential real estate market might be verging on a bit of boredom lately. For over two years, the ticket price for newly built homes has remained basically unchanged in both of Alberta’s two largest cities.

    In December 2011, the new housing price index in Edmonton was 90.2 – exactly the same as it was in November. Calgary’s index was 95.5, up only marginally from 95.3 in the previous month.

    Statistics Canada’s 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 indexed to a reference price in 2007, which means prices in both Calgary and Edmonton are currently somewhat lower than they were in the reference year.

    The index over the past two years reflects a general characteristic of Alberta’s housing market: it’s stable. Other economic indicators in residential real estate – including housing starts and existing home prices – have shown similar patterns of stability in recent years.

    Alberta’s rising population and great labour market conditions are boosting housing demand. Yet that may be counter-balanced by the general belief that mortgage rates and prices will remain steady in the coming months. This may be reducing the urgency for potential buyers to jump into the market.

    This all suggests a fairly balanced, healthy market. The current stability eases any fears of inventory or price bubbles building – which pose much bigger problems when they burst.

    | ATB Financial
    Source: Troy Media

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