Statistics Canada says The New Housing Price Index rose 0.4% in January, registering the same month-over-month growth rate for the third consecutive month.
Figures released this morning show that, between December and January, prices rose the most in St. John's (1.7%), followed by Winnipeg (0.7%), and Toronto and Oshawa (0.6%). Ottawa–Gatineau, Saskatoon and Calgary all registered 0.5% increases.
In St. John's, prices rose as builders reported new 2010 list prices as well as increased labour costs. In Winnipeg and in Toronto and Oshawa, the increase in prices was primarily attributed to higher list prices introduced in the new year.
Builders in Ottawa–Gatineau as well as in Toronto and Oshawa continued reporting good market conditions.
The nation's number crunchers also report that the largest monthly decrease in new housing prices was recorded in St. Catharines–Niagara (0.4%). Monthly declines were also observed in Charlottetown (0.2%) as well as in Saint John, Fredericton and Moncton (0.2%). Lower negotiated selling prices reported by builders mostly explain the decreases in prices in January.
Year over year, the New Housing Price Index was up 0.1% in January, compared with a 0.9% decline in December 2009. This was the first year-over-year increase since December 2008, mostly as a result of price decreases in Western Canada that were less pronounced this January than in previous months.
The largest year-over-year increase was recorded in Québec (6.2%) followed by St. John's (5.5%). Higher residential land values remain the primary reason for the increases in both metropolitan areas.
Compared with January 2009, contractors' selling prices were also higher in Ottawa–Gatineau, Winnipeg, Montréal, Regina as well as Toronto and Oshawa.
On the Prairies, 12-month declines were recorded in Edmonton (6.5%), Saskatoon (2.3%) and Calgary (0.6%).
Year-over-year declines were also reported in Victoria (7.3%) and Vancouver (1.0%).
Declines slowed in most of Western Canada's metropolitan regions as new housing prices were returning to the price levels observed prior to the highs registered at the end of 2007 and the beginning of 2008.
