Cost of a new home edges higher
By Roma Luciw - Globe and Mail
The price tag for a new house edged 0.5% higher in February, with home-buyers in Regina experiencing the largest increase amid brisk sales, Statistics Canada said Thursday.
Contractors across Canada sold new homes for an average 10% more than they did last February, the report said, a smidgeon below the 10.1% year-over-year rise seen in January.
“The new house price index points to some moderation in the residential construction price deflator,†said Ted Carmichael, chief economist at J.P. Morgan Securities Canada Inc. “The rise in the new house price index also feeds directly into the CPI for shelter, and is expected to continue to support core services inflation in the coming months.â€
Prices rose in ten of the 21 urban areas surveyed, with Regina leading the pack with a 4.7% rise as rapid sales led to prolonged construction times. New home prices in Québec and Edmonton climbed 2.7% in February.
“Costs for construction materials, labour rates and higher lot values were contributing factors in all three metropolitan areas,†Statscan said.
There were, however, signs of easing, as prices in eight areas did not budge. Windsor actually experienced a drop of 0.9%, due to new home buyer incentives.
On a year over year basis, prices in Edmonton jumped the most, rising 42.5%, followed by Calgary at 37.8%.
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