New housing prices in Canada rose by 0.3% in August from July, the largest advance in seven months, on strong gains in two of the biggest metropolitan areas, according to information released Thursday by Statistics Canada.
Market analysts had expected only a 0.1% rise. The month-on-month gain was the largest since the 0.3% increase seen in January.
The agency said the combined region of Toronto and Oshawa - which accounts for 28% of the entire market - was the biggest contributor to the overall gain, rising 0.3% on better list prices and market conditions.
Prices in Calgary, capital of Canada's booming energy industry, rose by 0.5% from July on land development costs, strong market conditions and higher demand.
Month-on-month, prices were up seven of the 21 major metropolitan regions, down in seven and unchanged in seven. Prices were 1.5% higher than in August 2013.
The new housing price index excludes apartments and condominiums, which the government says are a particular cause for concern and which account for two-thirds of new housing.
