Canada's New Housing Price Index rose 0.1% in November following 0.2% rise in October, led by higher prices in Toronto and Oshawa

OTTAWA , January 10, 2013 (press release) – The New Housing Price Index (NHPI) rose 0.1% in November, following a 0.2% increase in October.

The combined metropolitan region of Toronto and Oshawa was the top contributor to the advance. Market conditions were the primary reason for higher prices.

The largest monthly price advance in November occurred in London (+0.6%), followed by Halifax and St. Catharines–Niagara, with both regions recording a 0.5% increase.

Increased operating costs were the main reason for the price advance in London. In Halifax, prices rose as a result of increased material costs. Builders in St. Catharines–Niagara reported new higher list prices for new phases of development.

Prices were unchanged in 4 of the 21 metropolitan regions surveyed in November. Monthly prices declined 0.5% in Victoria and 0.4% in Vancouver as a result of lower negotiated selling prices.

On a year-over-year basis, the NHPI rose 2.2% in the 12 months to November, following a 2.4% increase the previous month. The main contributor to the advance was the combined metropolitan region of Toronto and Oshawa, where the year-over-year-increase in contractors' selling prices was 4.1%. Winnipeg was also up 4.1% for the year. Other significant year-over-year increases occurred in Regina (+3.3%) and Québec (+2.9%).

Among the 21 metropolitan regions surveyed, 4 posted 12-month price declines in November. The largest decrease was in Victoria (-2.9%).

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