Canada new housing prices climb for a seventh month

Thu Aug 14, 2014 8:57am EDT
 
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OTTAWA (Reuters) - New housing prices in Canada rose 0.2 percent in June from May, as analysts expected, gaining for a seventh consecutive month, Statistics Canada said on Thursday.

On a year-over-year basis, prices were up 1.5 percent, the same as in May.

The combined metropolitan region of Toronto and Oshawa, which accounts for 28 percent of the overall market, was the top contributor to June's growth. Prices rose by 0.3 percent on healthy market conditions and higher new list prices.

Calgary - capital of Canada's booming energy industry - posted a 0.3 percent advance over May. Prices in the city rose by 7.3 percent year-over-year, by far the highest growth across the country.

Month-on-month, prices were up in eight of the 21 major metropolitan regions, down in seven and unchanged in six.

The Canadian government, which has intervened in the mortgage market several times since 2008 to cool the sector, has long expressed concerns the housing market might overheat though it thinks a soft landing is more likely.

The new housing price index excludes condominiums, which the government says are a particular cause for concern.

(Reporting by David Ljunggren; Editing by Bernadette Baum)

 
A man works on a new construction home in Kitimat, in northwestern British Columbia on April 13, 2014. 
REUTERS/Julie Gordon