By Akhil Shah
OTTAWA (MNI) – Canada’s new housing price index advanced 0.1% in
August after posting a similar increase in July, Statistics Canada
reported Tuesday.
The new housing price index measures the change in selling prices
of new residential homes over time. This is the price agreed upon
between the contractor and buyer at the time of signing. Its purpose is
to measure changes in the selling prices of new houses where detailed
specifications pertaining to each house remain the same between two
consecutive periods. The prices collected from builders are the actual
market prices excluding all the value added taxes.
On an annual basis the index climbed 2.3% in August, led by price
increases in the Toronto and Oshawa area and Regina area; both posting
a jump of 5.1% from a year ago. Other contributors to the annual growth
were St. John’s (+4.1%), Winnipeg (+4.1%) and
Kitchener-Cambridge-Waterloo (+3.4%). The increase was held back by
declines in Windsor (-3.2%) and Victoria (-1.9%).
Increased material costs in August, pushed prices 1.2% higher in
Regina for the month. Other monthly increases were recorded in the
aggregated metropolitan regions of Greater Sudbury and Thunder Bay
(+0.9%) and Saint John, Fredericton and Moncton (+0.6%). Good market
conditions was cited as the main reason for their price increases in
August.
The biggest downward monthly contributors were Vancouver (-0.4%)
and Victoria (-0.3%) as builders offered promotional pricing to generate
sales or recorded lower negotiated selling prices.
— Akhil Shah is a reporter with Need To Know News In Ottawa
** Market News International Ottawa **
[TOPICS: M$C$$$,MAUDS$]
