New home prices in Calgary drive up national average
Calgary posts the highest year-over-year price increase.
Published Thursday, September 12, 2013 10:33AM MDT
Statistics Canada says the cost of a new home went up again in July and Calgary, Toronto and Oshawa are the top contributors.
The New Housing Price Index (NHPI) rose by 0.2 percent in July which was the same for the previous month.
The NHPI measures changes in the selling prices of new residential homes between contractor and buyer over time. The prices are market selling prices less value added taxes.
Statistics Canada says the combined metropolitan areas of Calgary, Toronto and Oshawa were primarily responsible for the increase.
The agency says an increase in material and labour costs and a shortage of developed land are driving prices up in Calgary.
The biggest monthly price advance in July was in St. John’s where the market has been relatively flat for the last few years. Builders say the higher prices are due to an increase in land development costs.
Over the past eight months, Calgary has been a top contributor to increases in new housing prices and is credited with posting the highest year-over-year price increase at 5.8 percent.
The 5.8 percent year-over-year increase in contractors’ selling prices was the largest price movement in the city since December 2007.
In July, prices decreased in Sudbury, Thunder Bay, Ottawa-Gatineau and Saskatoon.
Statistics Canada says prices were unchanged in five of the 21 metropolitan areas surveyed.
To read the report, visit the Statistics Canada website.