New Housing Predictions News from Statistics Canada
New Housing Price Index for 2008 The year-over-year growth rate in new housing prices accelerated for the first time in 16 months in December, mainly the result of strength in the housing market in the Prairie provinces. Nationally, contractors' selling prices rose 6.2% between December 2006 and December 2007, a slightly faster pace than the year-over-year increase of 6.1% in November.New Housing Predictions
On a monthly basis, prices rose 0.1% between November and December, resulting in a New Housing Price Index of 156.7 (1997=100). Regionally, prices again rose at the fastest pace in Saskatoon, which led the nation with an annual price increase of 45.1%. On a month-over-month basis, housing prices rose 1.0% between November and December in Saskatoon. A number of factors were behind the gain, including increased costs for concrete and drywall, as well as higher land development costs reported by some builders. In Regina, the year-over-year increase was 25.9%, a deceleration from the growth rate of 28.2% in November 2007. In Calgary, prices rose 6.0% between December 2006 and December 2007, slightly faster than the 5.0% year-over-year increase the month before. On a monthly basis, new housing prices in Calgary were up 0.6%. Some developers increased their lot prices as they moved into new development areas. In Edmonton, home buyers saw prices that were 21.5% higher than in December 2006, down from the high of 41.5% recorded in December 2006. Winnipeg experienced a slight gain, as prices rose 0.1% between November and December. The year-over-year increase in December was 15.0%. On the West Coast, the 12-month increase for Vancouver was 6.4%, unchanged from November.New Housing Predictions
In Victoria, contractors' selling prices rose 1.6% from December 2006, the largest increase since August 2006. Prices held steady in December compared with November in Victoria, Vancouver, Edmonton and Regina. Windsor was still the only city in Canada to record year-over-year deflation, with prices falling 1.1% from December 2006. Contractors' selling prices for December rose 0.5% from the previous month. Elsewhere in Ontario, home buyers in St. Catharines–Niagara faced a small increase, as new housing prices were up 0.3% from November, and 3.1% from December 2006. The year-over-year gain in Greater Sudbury and Thunder Bay was 5.9%, Toronto 3.4%, London 3.1% and Hamilton 2.8%. In Montréal, the 12-month rate growth rate remained unchanged at 4.1% and in Québec, it remained stable at 6.0%. Monthly new housing prices were also unchanged from November 2007 for both cities. In the Atlantic region, buyers in Halifax saw prices rise 10.4% from December 2006. This was a result of higher costs for materials and labour, increased demand and higher lot prices. Prices were unchanged from November. Home buyers in St. John's saw an increase of 1.2% between November and December, and a 7.9% gain on a 12-month basis. The principal factors were higher material and labour costs, as well as a strengthening economy in 2007. Available on CANSIM: table 327-0005. Definitions, data sources and methods: survey number 2310. The third quarter 2007 issue of Capital Expenditure Price Statistics (62-007-XWE, free) will soon be available.Read more...
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