OTTAWA
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August 21, 2023
(press release)
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Canadian new home prices edge down in July Chart 1: New Housing Price Index Victoria leads monthly decline in July In July 2023, prices increased the most month over month in Sherbrooke (+1.2%), followed by St. John's (+1.0%). Victoria also leads yearly decline in July Among the CMAs surveyed, Victoria (-3.7%) recorded the largest year-over-year decline in new home prices in July 2023, followed by Edmonton (-2.9%). A similar yearly decline was observed in the resale housing market in Victoria, with the Victoria Real Estate Board reporting a 3.5% year-over-year decline in the benchmark price of a single-family home in July. In July, the largest year-over-year increases were reported in the Québec (+3.5%), Calgary (+1.6%) and St. John's (+1.6%) CMAs. Chart 2: New house prices decline at the national level Note to readers The prices collected from builders and included in the index are market selling prices less value-added taxes, such as the federal goods and services tax and the provincial harmonized sales tax. The survey covers the following dwelling types: new single homes, semi-detached homes and townhomes (row or garden homes). The index is available at the national and provincial levels and for 27 census metropolitan areas (CMAs). The index is not subject to revision and is not seasonally adjusted. Products The New Housing Price Index: Interactive Dashboard, which allows users to visualize statistics on new housing prices, is available. The Housing Market Indicators dashboard, which provides access to key housing market indicators for Canada, by province and by CMA, is also available. For more information on the topic of housing, visit the housing statistics portal. The video Producer Price Indexes is available on the Statistics Canada Training Institute webpage. It provides an introduction to Statistics Canada's producer price indexes—what they are, how they are compiled and what they are used for. Statistics Canada launched the Producer price indexes portal as part of a suite of portals for prices and price indexes. It provides users with a single point of access to a wide variety of statistics and measures related to producer prices. Next release Contact information Industry Intelligence Editor's Note: This press release omits select charts and/or marketing language for editorial clarity. Click here to view the full report.
The national index edged down by 0.1% month over month in July, following two months of growth. Of the 27 census metropolitan areas (CMAs) surveyed in July, prices were unchanged in 12, down in 8 and up in 7.
New home prices decreased the most month over month in Victoria (-0.8%) in July, followed by Greater Sudbury (-0.7%), Regina (-0.5%) and Ottawa (-0.5%), with builders in many CMAs noting weakened market conditions as the reason for the reported monthly declines. This was the second consecutive monthly decrease in new home prices in Victoria, and the seventh in Ottawa. Market conditions in July were impacted by the Bank of Canada's decision to increase the policy interest rate an additional 25 basis points, bringing the total rate to 5.00%, the highest since April 2001.
Nationally, new home prices were down 0.9% year over year in July, in contrast to the increase of 7.5% recorded in July of the previous year. Borrowing costs have continued to rise since July 2022, contributing to the yearly decline in new home prices and slowing of the housing market. The Canada Mortgage and Housing Corporation reported 54.2% more single-family homes (single detached, semi-detached, and row) completed but not sold (unabsorbed inventory) nationally in July 2023, compared with July 2022.
The New Housing Price Index (NHPI) measures changes over time in the selling prices of new residential houses. The prices are those agreed upon between the contractor and the buyer at the time the contract is signed. The detailed specifications for each new house remain the same between two consecutive periods.
The Technical Guide for the New Housing Price Index (NHPI) is available. This document provides details on the methodology used to calculate the NHPI.
The New Housing Price Index for August will be released on September 21, 2023.
For more information, or to enquire about the concepts, methods or data quality of this release, contact us (toll-free 1-800-263-1136; 514-283-8300; infostats@statcan.gc.ca) or Media Relations (statcan.mediahotline-ligneinfomedias.statcan@statcan.gc.ca).
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