According to Statistics Canada, the New Housing Price Index (NHPI) rose 0.2 percent in March, following an identical increase in February. The index has increased for 12 consecutive months, largely driven by higher new housing prices in Ontario and British Columbia.
Of the metropolitan areas covered by the index, the top contributors to the national increase in March were the combined region of Toronto and Oshawa (+0.4 percent) and Vancouver (+0.4 percent). Builders in both regions cited market conditions as the main reason for the advance.
Prices were unchanged in 11 of 21 metropolitan areas surveyed. In Regina, higher material costs and increases due to market conditions were offset by lower negotiated selling prices. In Victoria, price gains due to current market conditions were also offset by lower negotiated selling prices.
New home prices fell in Saskatoon (-0.4 percent) and in St. John's (-0.1 percent). Builders in both metropolitan areas reported lower negotiated selling prices as the main reason for the decreases. This marked the first decline for St. John's in 10 months.
The NHPI increased 2.0 percent over the 12-month period ending in March, the largest year-over-year increase at the national level since April 2013.