New home prices on the rise

Ontario and Alberta lead the way as new home prices in Canada rose again in September, according to Statistics Canada.StatCan’s latest New Housing Price Index (NHPI) rose 0.1 per cent in September, following a 0.3-per-cent increase in August. Provincially, increases in Ontario and Alberta offset declines in Quebec and Manitoba.Condo constructionThe combined metro region of Toronto and Oshawa was the top contributor to the September growth, with new home prices up 0.3 per cent over August. Builders reported new list prices, attributable to market conditions and strong consumer demand, as the primary reason for the increase. Toronto and Oshawa are also among the top markets on a year over year basis, bested only by Calgary.Largest monthly increase in LondonThe census metropolitan area (CMA) of London (0.5 per cent) recorded the largest monthly price increase in September. Builders cited increased city development charges as the main reason for the price rise, the largest since October 2013.New home prices were up 0.3 per cent in the CMAs of Calgary, Kitchener-Cambridge-Waterloo and Halifax. Builders in Calgary reported higher material and labour costs, as well as market conditions, as the reasons for the increase. Higher prices in Kitchener-Cambridge-Waterloo were primarily attributable to market conditions. In Halifax, development costs contributed to the price increase, the biggest in 14 months.New home prices were down 0.4 per cent in Winnipeg, as several builders offered promotions and incentives to stimulate sales. This was the first decline in new housing prices in that city in more than 18 years.Prices fell 0.3 per cent in Montreal as a result of market conditions and lower negotiated selling prices. This was the largest price decline in Montreal since December 2010.New homes in CalgaryCalgary tops year-over-yearOn a year-over-year basis, the NHPI rose 1.6 per cent in September, up slightly from the August increase of 1.5 per cent. Calgary (6.5 per cent) and the combined metropolitan region of Toronto and Oshawa (2.5 per cent) continued to lead the annual growth, although Calgary’s price increases have been slowing over the past few months.Other significant year-over-year increases occurred in Hamilton (3.1 per cent), St. Catharines-Niagara and London (both up 2.4 per cent).Among the 21 metropolitan areas surveyed, five posted 12-month price declines in September: Charlottetown (-1.8 per cent), Victoria (-1.7 per cent), Vancouver (-1.2 per cent), Ottawa-Gatineau (-1.1 per cent) and the combined metro region of Saint John, Fredericton and Moncton (-0.3 per cent).Related readingEdmonton the top city in Alberta for real estate investmentSteady housing market predictions for 2015Goldilocks market, Canada home prices moderating – but not everywhere! Calgary is hot, and here’s whyCanada’s hottest real estate market? You might be surprised

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