New house prices rose 0.1 per cent in January: StatsCan

OTTAWA – Statistics Canada says its price index for new homes rose 0.1 per cent in January, following a 0.2 per cent increase in December.

The agency says the metropolitan region of Toronto and Oshawa, as well as the Calgary region, were the top contributors to the increase.

Builders cited market conditions as the primary reason for higher prices in Toronto and Oshawa, while increased material and labour costs contributed to higher prices in Calgary.

The largest monthly price advance in January occurred in Charlottetown, where prices rose 1.0 per cent as builders returned to list prices after having reported lower negotiated selling prices the previous month.

Monthly prices declined 0.2 per cent in Ottawa–Gatineau, as a result of builders offering larger bonus packages to generate interest and stimulate sales.

New home prices fell 0.1 per cent in the combined region of Saint John, Fredericton and Moncton, as well as in Kitchener–Cambridge–Waterloo, Edmonton and Vancouver as builders in those areas also reduced prices in an attempt to generate sales.