Housing prices in Canada were positive to begin 2017, most of the push coming from massive price hikes in Ontario.
Figures released Thursday morning by Statistics Canada showed the New Housing Price Index rose 0.1% in January from December.
Prices in Toronto notched a 0.2% gain in January. Higher land prices were somewhat offset by lower negotiated selling prices and bonus packages offered by builders to generate sales.
Kitchener–Cambridge–Waterloo recorded the biggest price gain at 1%. Builders in the region cited a shortage of developed land as the reason for the rise, the largest since June 2012.
Other significant price increases were observed by the nation's number crunchers in St. Catharines–Niagara (+0.9%) and London (+0.9%). In St. Catharines–Niagara, builders reported higher construction costs and improving market conditions as reasons for the rise. Builders in London tied the gains to higher construction costs.
The largest monthly price decreases were recorded in Greater Sudbury (-0.8%) and St. John's (-0.4%). In both regions, the primary reason for the declines was lower negotiated selling prices.
The agency also says that, for the 12 months leading up to January 2017, the index gained 3.1%. Toronto was the top contributor to the gain, and also recorded the largest year-over-year price increase -- at 8% -- among the metropolitan areas surveyed.
