According to an article in Verico Mortgage magazine, citing Statistics Canada, The National Housing Price Index (NHPI) from April to May has mirrored the rise from March to April, which is just under half of a percentage point.
Regina has led the pack with a near 3.5% rise in prices, and Toronto then Oshawa coming in a distant second and third place. Perhaps the reason for the mere .7% increase in Toronto and Oshawa may be the drop in pricing of many high rise and low rise condos in Toronto. And in comparison, many cities across Canada, such as Kitchener, and Victoria have actually experiences a drop in housing prices, despite the positive number cited for the NHPI.
So what factors are being cited for the increase in the NHPI? The rise in construction costs were not only sited in Regina but across many provinces. Construction costs rise as a result of costs of material, land developments, and labour.
Year-over-year NHPI in Canada show more vast increases than the above mentioned month-over-month NHPI, with Regina again topping the chart at a near seven and a half percent increase. This is closely followed by St. John’s and then Vancouver. Still other cities across Canada experienced a rise in year-over-year NHPI while a dozen cities cited a decrease.
The NHPI tracks and formalizes trends for new homes only, includes prices obtained from builders, and does not include taxes such as GST or HST. For information about how the newly implemented HST can affect your new home purchase, contact your knowledgeable mortgage broker.
