The price of new homes in Canada increased 0.2% in September compared to the previous month.
The gain was the largest in two years and was driven by another strong month for the Kitchener—Cambridge—Waterloo market, recording a second consecutive monthly increase of 2.5%. This market is seeing strong demand due to its relative affordability compared to Toronto and favourable market conditions.
Statistics Canada’s New Housing Price Index also shows a 1% increase in new home prices for Ottawa (where builders reported higher construction costs) and Trois-Rivières (with more favourable market conditions) in September.
Vancouver and Kelowna saw new home prices fall, by 0.6% and 0.3% respectively.
However, nationally on a year-over-year basis prices were down 0.1%, the fourth consecutive monthly decline.
Calgary and Vancouver accounted for the largest annual drop with 2.2% each.
Ottawa (+6.3%) and Montréal (+4.9%) posted the largest year-over-year increases in September, because of favourable market conditions and higher construction costs, which are largely a result of a skilled labour shortage. This was the largest year-over-year increase in Ottawa since February 2005 and the largest in Montréal since August 2008.
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