According to Statistics Canada, the New Housing Price Index (NHPI) rose 0.2 percent in February, following a 0.1 percent increase in January. The advance was led by higher new home prices in Ontario and British Columbia.
Of the metropolitan areas covered by the index, the combined region of Toronto and Oshawa (+0.4 percent) and Vancouver (+0.8 percent) were the top contributors to the national increase in February. Builders in both regions cited new list prices and market conditions as the main reasons for the advance. This was the largest monthly price increase in Vancouver since September 2009.
Prices were unchanged in 9 of the 21 metropolitan areas surveyed, including Ottawa–Gatineau and Regina. In Ottawa–Gatineau, higher material costs and new list prices were offset by declines attributable to market conditions. In Regina, land prices were up as a result of new city service fees and development charges, but the gains were offset by lower negotiated selling prices.
New housing prices fell in Calgary (-0.5 percent) and Saskatoon (-0.2 percent). Builders in Calgary reported market conditions as the main reason for the decrease—the largest since July 2011. In Saskatoon, builders cited lower negotiated selling prices as the primary reason for the decline.
Meanwhile, the NHPI increased 1.8 percent over the 12-month period ending in February, following an identical increase in January.