By Kim Mackrael
OTTAWA--Canadian new house prices advanced in November, led by higher prices in the Toronto area that builders attributed to a shortage of developed land.
Canada's new housing price index advanced 0.2% in November, Statistics Canada said Thursday. Market expectations were for a 0.3% gain, according to economists at Royal Bank of Canada.
On a 12-month basis, Canadian new house prices advanced 3% in November.
The new-house price data from Statistics Canada cover single-dwelling, semi-detached and row houses. The report does not incorporate prices for newly built condominium units.
Statistics Canada said the overall gain was driven largely by cities in the province of Ontario, with the Toronto region recording a 0.4% increase in November from the previous month. On a 12-month basis, new-house prices in the Toronto region rose 8.2%.
Builders in Toronto reported a shortage of developed land as a factor in rising prices, the data agency said.
Meanwhile, new house prices in the metropolitan area of Vancouver, British Columbia, posted their first monthly decline since January 2015. Prices fell 0.3% in the west coast city in November, Statistics Canada said, reflecting lower negotiated selling prices and new purchase incentives aimed at boosting sales.
After years of rapid price gains, Vancouver's housing market has cooled somewhat in recent months, roughly coinciding with the introduction of a 15% tax on foreign home buyers in the city. On a 12-month basis, Vancouver prices were up 4.4%.
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(END) Dow Jones Newswires
January 12, 2017 08:45 ET (13:45 GMT)
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