Bloomberg News

Canadian New-Home Prices Rise for a Fifth Month on Toronto Gain

October 12, 2011

Oct. 12 (Bloomberg) -- Canada’s new-home price index rose for a fifth month in August led by a gain in Toronto, the government statistics agency said.

The index advanced 0.1 percent matching the July increase, Statistics Canada said today in Ottawa. The August increase was also the same as the median estimate in a Bloomberg survey with 14 responses.

Prices in Toronto and Oshawa, which make up 27 percent of the index, rose 0.2 percent. Vancouver prices fell 0.4 percent, tempering its rise.

Finance Minister Jim Flaherty tightened mortgage rules to check record consumer debts earlier this year, and said Canadians should ensure they can afford to finance their homes because interest rates will rise at some point.

From a year earlier, new-home prices increased 2.3 percent in August, matching the July rate.

--With assistance from Ilan Kolet in Ottawa. Editor: Paul Badertscher

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To contact the reporter on this story: Greg Quinn in Ottawa at gquinn1@bloomberg.net

To contact the editors responsible for this story: Christopher Wellisz at cwellisz@bloomberg.net; David Scanlan at dscanlan@bloomberg.net.


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