Toronto, ON, and Vancouver, BC, were largely responsible for a 0.7 per cent monthly rise in new house prices in Canada in May, said Statistics Canada Thursday. Toronto was the largest contributor to the national gain, rising 1.1 per cent from April to May. Builders linked higher prices to market conditions, a shortage of developed land and higher construction costs.
Canada New Housing Price Index: May 2017
Prices for new houses in Vancouver rose for a third consecutive month, up 2.2 per cent in May and the largest increase for this census metropolitan area since May 2007. Builders cited favourable market conditions as the main reason for the gain.
New house prices in Canada rose 3.8 per cent over the 12-month period ending in May, led by a 9 per cent increase in Toronto, ON.
Other notable year-over-year gains were in the Southern Ontario communities of St. Catharines–Niagara (+7.2 per cent), Kitchener–Cambridge–Waterloo (+6.5 per cent) and London (+6.5 per cent).
Prices were down in six metropolitan areas, with Calgary (-0.9 per cent) posting the largest decrease.