New Housing Price Index (NHPI)
Summary of changes
Activity on this program started: 1969
Beginning with the April 2017 reference month, hedonic quality adjustment has been used to impute prices for the month prior to the one when new house models are priced for the first time. This imputation allows new house models to be used in index calculations sooner.
Beginning with the January 2017 reference month, the metropolitan area of Thunder Bay is no longer included in the NHPI.
As of the January 2017 reference month, the base period of the New Housing Price Index (NHPI) changed from 2007 to December 2016.
Instrument design - Beginning with the January 2016 reference month, NHPI data for the 4 new metropolitan areas ( Sherbrooke, Trois-Rivières, Guelph and Kelowna) were collected using an electronic questionnaire. This pilot test of the electronic questionnaire was used to evaluate the new tool and respondents' reaction to this mode of collection.
Beginning with the September 2016 reference month, data for all metropolitan areas have been collected using an electronic questionnaire. The electronic questionnaire replaces the interviewer administered paper questionnaire. The redesigned questionnaire collects additional information on house models, lot characteristics and reasons for price change.
Beginning with the January 2016 reference month, four new cities were added to the observed population for the NHPI: Sherbrooke, Trois-Rivières, Guelph and Kelowna.
The provincial government of British Columbia introduced legislation on May 14, 2012, announcing the return to a Provincial Sales Tax on April 1, 2013. From April 1, 2012, until March 31, 2013, there are new housing transitional rebates in place. After the transition is complete, the Provincial Sales Tax on building materials in British Columbia will be embedded in the contractor's selling prices of new houses. These changes will be reflected in the NHPI as reported by respondents.
As of the December 2010 reference month, the base year of the New Housing Price Index (NHPI) changed from 1997 to 2007.
Estimation - As of July 1, 2010, the Harmonized Sales Tax (HST) will come into effect in Ontario and British Columbia. According to the Canada Revenue Agency "[if] the written agreement of purchase and sale is entered into after June 18, 2009 (November 18, 2009, in British Columbia), and both ownership and possession of the house transfer to the purchaser after June 2010, the HST at 13% (12% in British Columbia) would apply to the sale." Some builders in Ontario are already including the HST in the prices of some of their new houses. The impact of the HST is reflected in some of the metropolitan areas NHPI's in this province in February 2010. Builders in British Columbia have not yet reported the inclusion of the HST on the prices of their new houses.