New Housing Price Index, August 2023
Released: 2023-09-21
August 2023
0.1% 
(monthly change)
August 2023
0.0%
(monthly change)
August 2023
0.0%
(monthly change)
August 2023
0.0%
(monthly change)
August 2023
0.0%
(monthly change)
August 2023
0.0%
(monthly change)
August 2023
-0.3% 
(monthly change)
August 2023
0.1%
(monthly change)
August 2023
-0.3%
(monthly change)
August 2023
0.4%
(monthly change)
August 2023
0.5%
(monthly change)
Canadian new home prices edge up in August
The national index edged up by 0.1% month over month in August. Prices were unchanged in 16 of the 27 census metropolitan areas (CMAs) surveyed, up in 5 and down in 6 CMAs.
Chart 1
New Housing Price Index
Calgary reports fourth consecutive monthly increase in new home prices
New home prices increased the most month over month in Calgary (+0.6%), Vancouver (+0.5%) and Sherbrooke (+0.4%). This was the fourth consecutive monthly increase in Calgary, with builders in the CMA noting construction costs as the reason for the price growth. The cost to construct a new house in Calgary rose by 1.1% (single-detached) and by 1.3% (townhouse) in the second quarter compared with the first quarter, as reported by the Building Construction Price Index.
In August, prices decreased the most month over month in Ottawa (-1.3%), followed by Saskatoon (-0.3%) and Oshawa (-0.3%). This was the eighth consecutive decrease in Ottawa.
Ottawa leads yearly decline in August
Nationally, new home prices were down 0.9% year over year in August.
Borrowing costs remained elevated, with the Bank of Canada policy interest rate at 5.00% in August, compared with 2.50% in August 2022.
According to the Canadian Home Builders' Association's Housing Market Index, builders' confidence in the residential construction sector remained low in the second quarter of 2023 (39.9) and well below the second quarter of 2022 (65.7), with builders noting challenges in converting prospective buyers into sales. In addition, some builders noted that discounts were needed to generate sales.
Ottawa recorded the largest year-over-year decline (-3.9%) in new home prices in August 2023. Higher mortgage rates have slowed the new housing market in Ottawa, with the Canada Mortgage and Housing Corporation reporting 53.8% more single family homes (single detached, semi-detached, and row) completed but not sold (unabsorbed inventory) in this CMA in August, compared with August 2022.
In August 2023, the largest year-over-year increases were reported in the CMAs of Québec (+3.5%), Calgary (+2.0%) and St. John's (+1.6%).
Chart 2
New house prices increase at the national level
Note to readers
The New Housing Price Index (NHPI) 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 townhomes (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 CMA, is also available.
For more information on the topic of housing, visit the housing statistics portal.
The video Producer Price Indexes is available on the Statistics Canada Training Institute webpage. It 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 September will be released on October 24, 2023.
Contact information
For more information, or to enquire about the concepts, methods or data quality of this release, contact us (toll-free 1-800-263-1136; 514-283-8300; infostats@statcan.gc.ca) or Media Relations (statcan.mediahotline-ligneinfomedias.statcan@statcan.gc.ca).
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