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OTTAWA, Sept 8 (Reuters) - Canadian new housing prices rose more than expected in July, climbing 0.4 percent from June on continued strength in the hot market of Toronto, Statistics Canada data indicated on Thursday.
The monthly increase, the 16th in a row, was greater than the 0.2 percent advance forecast by analysts in a Reuters poll.
Prices in the combined Toronto-Oshawa region, which accounts for 27.92 percent of the Canadian market, rose by 1.0 percent. Builders cited market conditions and prices on new listings as reasons for the increase.
Prices in Vancouver, another booming market, climbed 0.6 percent. The rapid rise in prices in the two major cities have raised concerns that their markets are becoming overheated.
The new housing price index excludes apartments and condominiums, which the government says are a particular cause for worry and which account for one-third of new housing.
Reporting by David Ljunggren; Editing by Jeffrey Benkoe