Housing prices in this country improved in the last month of 2015, though the growth decelerated over past months.
Statistics Canada revealed that the New Housing Price Index edged up 0.1% in December, following a 0.2% increase in November. The advance was led by higher new home prices in Ontario and British Columbia. December marked the second consecutive month of slowing price gains.
The combined region of Toronto and Oshawa (+0.2%) was the top contributor to the national gain in December, while St. Catharines–Niagara recorded the largest monthly price increase (+0.9%).
Builders in both areas cited new list prices and market conditions as the main reasons for the advance, the second straight increase in St. Catharines–Niagara and the largest since February 2014. New home prices in Toronto and Oshawa have risen for 11 straight months.
The agency went on to say that new housing prices rose 0.4% in Regina, marking the largest increase in that census metropolitan area since May 2014. Builders attributed the gain to new city service fees and development charges.
Vancouver and Halifax both recorded price increases of 0.2% in December. Builders in both centres reported that new list prices were the primary reason for the advance. New housing prices in Vancouver have chugged along for seven consecutive months.
Prices were unchanged in 11 of the 21 metropolitan areas surveyed.
House prices are considered a lagging indicator. The prices of oil and commodities are the leading indicator on where Canadian housing is headed.
