New home prices in Canada changed course in August, gaining 0.1% after declining by the same amount in July, reflecting a slowdown in the housing market after strong growth for the better part of this last year.
Statistics Canada released data today showing that prices rose in seven of the 21 cities in the index, were unchanged in 10 and edged down in four.
Analysts in a Reuters poll had forecast, on average, a 0.1% decline in the August index.
Leading contributors to the growth were three cities in the province of Ontario: Toronto, Oshawa and Hamilton, as well as Montreal, Quebec.
Housing prices gained significantly as compared with August of 2009 as prices rose by 2.9%.
The housing only component of the new housing price index climbed 0.1% on a monthly basis and 4.5% on the year. The land only component was flat in August and slipped 0.2% on the year.
