By Akhil Shah
OTTAWA (MNI) – The new housing price index advanced 0.2% in October
after a similar reading in September, Statistics Canada reported
Thursday.
The rise remains very close to the norm the index has been
observing lately; increasing between 0.1% and 0.2% over the month.
On an annual basis the index advanced 2.5% in October, led by price
increases in the metropolitan region of Toronto and Oshawa area;
increasing 5.6% from a year ago. Other upward contributors to the annual
growth were Winnipeg (+5.6%), Regina (+5.1%) and St. John’s (+4.1%). The
increase was moderated back by declines in Windsor (-3.3%) and Victoria
(-1.9%).
The metropolitan region of Toronto and Oshawa were also the top
contributors to the monthly increase in October, registering a 0.4%
gain. However, the largest monthly price advance was posted by Edmonton
(+0.6%).
The increase in Edmonton was mainly a result of an increase in
material and labour costs and higher land values, while good market
conditions favored the Toronto and Oshawa areas. Prices remained
unchanged in 9 of the 21 metropolitan regions surveyed, the agency
reported.
The monthly increase was moderated by declines in the Victoria
(-0.6%), Saskatoon (-0.3%) and Vancouver (-0.1%). In order to stimulate
sales, builders lowered their prices in Victoria.
The new housing price index measures the change in selling prices
of new residential homes over time. This is the price agreed upon
between the contractor and buyer at the time of signing. Its purpose is
to measure changes in the selling prices of new houses where detailed
specifications pertaining to each house remain the same between two
consecutive periods. The prices collected from builders are the actual
market prices excluding all the value added taxes.
— Akhil Shah is a reporter with Need To Know News In Ottawa
** Market News International Ottawa **
[TOPICS: M$C$$$ MAUDS$]