- August 12, 2018
- Posted by: Trading
- Category: Market Overview
New home prices increased in June, marking the first upward movement since November 2017.
New Housing Price Index, monthly change
Nationally, new house prices edged up 0.1% in June, largely due to rising construction costs across the country. The cost of softwood lumber, which is widely used in residential construction, has been on the rise. According to the , the price of softwood lumber (except tongue and groove and other edge worked lumber) rose 34.3% year over year in June.
Among the 11 surveyed census metropolitan areas (CMAs) reporting growth in June, the largest increases were in Montreal (+1.0%) and Ottawa (+0.7%). Builders in both markets linked the gains to rising construction and land development costs. Other notable rises occurred in St. Catharines–Niagara (+0.5%) and Greater Sudbury (+0.4%).
In the west, prices for new homes were up in Calgary (+0.3%), Edmonton (+0.2%) and Vancouver (+0.2%). The increase in Vancouver follows five months of flat prices.
Six CMAs reported declines in June, with Oshawa (-0.3%) registering the largest decrease.
New home prices were unchanged in Toronto in June. Prices in this market have been flat or declining since November 2017.
New Housing Price Index, 12-month change
New house prices rose 0.8% year over year in June. The largest 12-month gains were in Ottawa (+5.0%) and London (+4.8%).
Among the four CMAs reporting declines, Toronto (-1.3%) and Regina (-1.2%) recorded the largest 12-month decreases.
USD/CAD for Aug. 8-10, 2018.
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