New home prices in Metro Vancouver rose for the 12th consecutive month in May, while Victoria saw the largest monthly new home price increase since May 2007, according to Statistics Canada data released July 14. Prices in both markets increased 1.1 per cent from April, with Toronto-Oshawa the only region in the nation to record larger gains at 1.9 per cent.
BC’s provincial new home price index was also up 1.0 per cent from April, behind only Ontario’s 1.4 per cent. BC builders reported market conditions as the primary reason for the increase.
Year-over-year, the purchase cost of a new home in the Vancouver Census Metropolitan Area (CMA) rose 5.1 per cent, the largest increase since June 2010, and again second only to Toronto-Oshawa’s year-over-year increase of 6.4 per cent. Victoria new home prices saw a year-over-year gain of 2.4 per cent, ranking BC’s capital city fifth among the 21 metropolitan areas surveyed across Canada.
Across the province, new home prices were up 4.8 per cent year-over-year, putting BC neck-and-neck with Ontario, which saw an increase of 4.9 per cent. The two provinces once again well surpassed gains in any of the other provinces or territories, as prices remained unchanged in Nova Scotia and dropped in Saskatchewan, Alberta and PEI. The gains in BC and Ontario led the national index to rise 2.7 per cent over the 12-month period ending in May, the largest year-over-year increase since September 2010.
The month-to-month national increase of 0.7 per cent over April's new home prices was the largest monthly rise since July 2007. Again, the gains were driven largely by increases in Ontario and BC, as no other provinces saw monthly gains of more than 0.2 per cent, and both PEI and Saskatchewan saw monthly decreases in the new home price index.
Changes in new home prices often do not mirror those seen in the resale market, as the price paid for a new home is only measured when the transaction is completed and registered with the Land Registry, rather than when the home is originally purchased off-plan. Because of long lead times on home construction, new home prices registered today are often those homes sold many months or even years ago – whereas MLS® resale home prices are much more up to date.
To see Statistics Canada's full report and interactive tables, click here.