After many months of declines, the prices of newly built housing in the Vancouver Census Metropolitan Area (CMA) rose both year over year and month over month in April, according to Statistics Canada data released June 11.
New homes in the CMA rose by 0.4 per cent year over year, causing the price of new homes across BC to increase 0.3 per cent compared with last April.
Vancouver also saw a rise in the new housing price index compared with March, increasing 0.6 per cent month over month. The seemingly modest increase is the CMA’s highest monthly rise in new housing prices since early 2010. This pushed up the price of new homes in the province as a whole by 0.5 per cent month over month.
Well-known Vancouver condo developer Bob Rennie recently told REW.ca that the reason for the discrepancy between new home and MLS® resale prices comes down to timing. 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 purchased off-plan. Because of long lead times on home construction, the new home prices registered today are those homes sold many months or even years ago – whereas MLS® home prices are much more up to date.
“It’s like comparing apples and watermelons,” said Rennie.
In April, Victoria’s new home price index continued its slide, dropping 1.5 per cent year over year and 0.2 compared with March.
Of all the metropolitan areas surveyed, Hamilton, Ontario again recorded the largest annual increase in April, with prices up 3 per cent compared with the same month last year.
Nationwide, April’s new housing price index increased 1.1 per cent year over year, and just 0.1 per cent compared with the previous month.
To read the full report and view the interactive statistics chart, click here.