Statistics Canada: New Housing Price Index, October 2024

New home prices see the largest month-over-month decline in 15 years

On a monthly basis, the New Housing Price Index (NHPI) fell 0.4% in October, the largest monthly decline since April 2009. However, the picture was mixed across the country, as prices were down in 9 out of 27 census metropolitan areas (CMAs) surveyed, but unchanged in 11 CMAs and up in the remaining 7.

Toronto and Vancouver pull down the national index

In October, the largest monthly declines were observed in Canada’s largest markets of Toronto (-1.2%) and Vancouver (-0.6%). Windsor also reported a decline of 0.6% in the month.

Builders attributed the price declines in these markets to weak market conditions. Toronto and Vancouver builders offered cash incentives and design credits to encourage new home sales.

Toronto has seen a decline in sales of new single-family homes (detached, semis and townhomes) in 2024. According to Altus Group, in September (latest data available) the sales were down 16% on a year-to-date basis. According to the Canada Mortgage and Housing Corporation, in Vancouver, inventory of new single-family homes completed and unsold surged by 48.8% in September on a year-over-year basis.

The largest monthly new home price increase in October was reported in Winnipeg (+0.4%). The increase in Winnipeg coincided with an active resale market where typical home prices are cheaper compared to the Canadian average, according to the Canadian Real Estate Association (CREA). The Winnipeg Regional Real Estate Board reported that sales rose by 19% year over year for detached properties in October.

New Housing Price Index, 12-month change

Nationally, the NHPI declined 0.2% year over year in October. The majority of the new housing markets surveyed in Canada (16 out of 27 CMAs) reported an annual decline.

The largest declines were registered in Kitchener–Cambridge–Waterloo (-2.8%), Ottawa (-2.8%) and Toronto (-1.5%). The largest increases were in the CMAs of Calgary (+4.5%) and Trois-Rivières (+3.1%).

Note to readers

The New Housing Price Index 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 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 townhouses (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 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: 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 census metropolitan area, is also available.

For more information on the topic of housing, visit the housing statistics portal.

The video “Producer Price Indexes” 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

The New Housing Price Index for November will be released on December 17, 2024.

Source: Statistics Canada