Canada shows slow price rise for new housing

PUBLISHED : Wednesday, 16 April, 2014, 5:39am
UPDATED : Wednesday, 16 April, 2014, 6:04am

The price of new Canadian homes rose 0.2 per cent in February from January, topping expectations of a 0.1 per cent gain after January's 0.3 per cent increase, according to Statistics Canada data.

Year on year, prices were up by a tame 1.5 per cent, remaining in the range of 1 to 2 per cent registered over the past year.

The Canadian government intervened in the mortgage market several times since 2008 to cool the sector, but has not voiced as much concern lately about the possibility of overheating. The new housing price index excludes condominiums.

Two metropolitan areas of particular concern showed moderate increases or outright declines. The Toronto/Oshawa region was up 0.2 per cent from January and 1.7 per cent from a year earlier; Vancouver was unchanged on the month and down 1.2 per cent on the year.

Calgary, in Alberta, was up 0.9 per cent from January and 6.9 per cent from February 2013.