Vancouver New Housing Prices Continue Steady Rise

Annual growth in city’s new housing price index slows after hot July but still climbs in August, according to national statistics agency

New homes townhouses

Vancouver Census Metropolitan Area (CMA) new home prices rose again in August, although at a slightly slower growth rate than last month, according to a Statistics Canada report released October 8.

The CMA’s new housing price index increased 1.4 per cent year over year in August, and across the whole of BC it increase 1.2 per cent.

Month over month, new home prices in both Vancouver and across the whole province rose 0.1 per cent in August compared with July’s figures, a slower monthly growth rate than seen in recent months.

Unlike in the resale housing market, Vancouver and BC’s annual price rises were similar to that of Canada as a whole, with new housing across the nation increasing its price index in August by 1.3 per cent year over year, and 0.3 per cent month over month.

New house price rises often do not reflect 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, the new home prices registered today are those homes sold many months or even years ago – whereas MLS resale home prices are much more up to date.

Victoria CMA’s new home prices continued their slide in August, down 1.6 per cent compared with the same month last year and down 0.1 per cent compared with the previous month, after three months of no price change. Victoria was again one of just five CMAs to record an annual decrease in August, out of a total of 21 CMAs surveyed.

Hamilton, Ontario and the combined metropolitan region of Toronto and Oshawa recorded the joint largest annual price increase in August, with prices up 3.8  per cent over the same month last year. Vancouver’s annual price growth of 1.4 per cent was fifth highest nationally.

To see Statistics Canada's full report and interactive tables, click here.