Prices for new houses continued on the upswing two months ago, and it appears the usual suspects were homes in Toronto and Vancouver.
Figures released Thursday morning by Statistics Canada indicate the new housing price index advanced 0.7% in May from April.
The agency said Toronto was the largest contributor to the national gain, rising 1.1% from April to May. Builders linked higher prices to market conditions, a shortage of developed land and higher construction costs.
Prices for new houses in Vancouver rose for a third consecutive month, up 2.2% in May and the largest increase for this census metropolitan area since May 2007. Builders cited favourable market conditions as the main reason for the gain.
Builders in Guelph (+1.7%), London (+1.5%) and St. Catharines–Niagara (+0.9%) also reported market conditions as the primary driver of higher new house prices.
Prices were down in five metropolitan areas and unchanged in nine.
StatsCan also said new house prices in Canada rose 3.8% over the 12-month period ending in May, led by a 9.0% increase in Toronto. Prices were down in six metropolitan areas, with Calgary posting the largest decrease at 0.9%.
