New home prices increase by 0.2% in June

(QMI Agency File Photo)

(QMI Agency File Photo)

REUTERS

, Last Updated: 10:03 AM ET

The prices of new homes in Canada rose by 0.2% in June, the 15th consecutive month-on-month increase, on continued strength in large cities such as Toronto and Calgary, Statistics Canada said on Thursday.

The advance matched market expectations and follows the 0.3% month-on-month-gain in May.

The Canadian government, which imposed tighter mortgage rules in June, and the Bank of Canada have expressed concern for many months about the risk the housing market could overheat.

Finance Minister Jim Flaherty is particularly worried about Toronto, which accounts for 26.6% of the entire market, where prices increased by 0.3% from May. Prices in Calgary were up by 0.5%.

Overall, new housing prices rose in 13 metropolitan regions, were unchanged in six and fell in two. Prices in June 2012 increased by 2.3% from June 2011 compared to the 2.4% year-on-year advance recorded in May 2012.

 


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