The new housing price index for Metro Vancouver saw another annual rise in April, the increase was nowhere close to the leaps in the resale market. Month over month, new home prices in Vancouver rose 0.2 percent above March 2016.
Across BC, new housing prices in April were up 3.8 percent year over year. The BC price index also rose 0.3 percent month over month, more than even Vancouver's.
Victoria's CMA's new home price index in April was up 1.3 percent compared with last year. It was also up 0.8 percent over March 2016. Canada's overall new home price index rose a steady 2.1 percent year over year in April.
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.
This could mean that the new home price index in the Vancouver and Victoria CMAs can be expected to surge much further over the coming months and years as they catch up with today’s market and land prices.