New home prices keep ticking up in November.
January 12, 2004 - The average selling price of a new home across Canada posted its largest monthly gain in almost two years in November, Statistics Canada reported on Monday.
The New Housing Price Index, a measure of the prices homebuilders charge buyers for a new home, rose five per cent in November from the year before, to 119.2.
Compared to October, the index rose by 0.7 per cent, the largest monthly gain since February 2002.
The index uses a baseline of 100 set in 1997 and tracks prices in 21 major urban markets across Canada.
The largest monthly gain in November was seen in St. Catharines-Niagara, with a gain of 1.6 per cent to 124.2. Quebec City followed with a gain of 1.2 per cent to 126.2. In third place was Toronto, up 1.1 per cent to 122.5. London was close behind with a gain of one per cent.
"Home builders in these areas cited higher prices for building materials and labour, such as bricklayers and framers," Statscan said in its Daily Bulletin. "Higher land values contributed to the increases in Québec, St. Catharines-Niagara and London."
Ottawa-Gatineau reported a gain on the month of 0.6 per cent, for a reading of 141. The nation's capital still boasts the highest reading on the index of any of the markets surveyed, a testament to how much the cost of buying a home has increased since 1997. On the year prices rose by 3.4 per cent.
Statscan said local homebuilders once again cited higher costs for labour and materials for the rise in home prices.
Overall, monthly increases were seen in 15 of the 21 markets surveyed. There were no decreases in prices.
Victoria boasted the largest year-over-year increase in the selling price of a new home for the second month in a row, up 9.6 per cent to a reading of 100.4. Quebec City followed with a gain of 8.8 per cent. St. Catharines-Niagara placed third with an increase of 7.5 per cent.
All 21 markets reported year-over-year gains.
© Copyright 2003 The Ottawa Business Journal