New home prices rise

It’s getting more expensive to buy a brand new home in some Canadian cities.

The New Housing Price Index (NHPI) rose 0.1% in January, following a 0.2% increase in December, says Statistics Canada. On a year-over-year basis, the NHPI rose 2.2% in the 12 months to January, following a 2.3% increase the previous month.

Read: Canadian housing to hold steady in 2013

Winnipeg posted the largest year-over-year increase at 5.9% in January, compared with 4% last year. According to builders, the increase was the result of higher costs for developed land.

In Toronto and Oshawa, the year-over-year increase in contractors’ selling prices was 4.2%. Builders say market conditions was the primary reason for higher prices in these cities.

Read: Housing affordability not a problem for most families

Other significant year-over-year increases occurred in St. Catharines–Niagara (3.4%), Calgary (3.3%) and Regina (3.2%). Increased material and labour costs contributed to higher prices in Calgary.

Meanwhile, the largest annual decreases were in Victoria (2.2%) and Vancouver (0.9%). Victoria has posted year-over-year decreases for the past four years, while Vancouver has registered 12 consecutive months of declines.

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Monthly prices also declined 0.2% in Ottawa–Gatineau, as a result of builders offering larger bonus packages to generate interest and stimulate sales. This was the first monthly decrease in the region since May 2011, when prices fell 0.7%.

Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.