Issue 16-234: Price of New Housing
December 9, 2016
The New Housing Price Index (NHPI)--contractors’ selling prices for new homes (both house and land)--in British Columbia climbed 5.2% in October compared to October 2015. This was the 19th consecutive month of year-over-year increase in the New Housing Price Index (NHPI), dating back to April 2015. This period of increase had been preceded by a 50 month run of year-over-year declines which began in February 2011.
Cost of the house (combining construction and market conditions) continues to be the most important contributor to the increase, rising 7.1% year-over-year. This contrasts with a modest 0.8% increase in land cost.
In Vancouver, the year-over-year increase in the NHPI in Vancouver was 5.2%, while in Victoria the increase was 4.7%.
The Canadian NHPI was 3.0% higher than in October 2015. Fifteen of the 21 metropolitan areas surveyed posted increases, with six recording year-over-year declines. Statistics Canada reports that “the combined metropolitan region of Toronto and Oshawa (+8.1%) was the top contributor to the gain, and also recorded the largest year-over-year price increase in September among the CMAs covered by the survey.”
Source: Statistics Canada