By Kim Mackrael

OTTAWA--Canadian new house prices rose as expected in September based on continued growth in the large Toronto and Vancouver markets.

Canada's new housing price index advanced 0.2% in September, Statistics Canada said Thursday. The increase matched economists' expectations, according to economists at Royal Bank of Canada.

On a 12-month basis, Canadian new house prices advanced 2.8% in September.

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.

The data agency said the Toronto region and the west coast city of Vancouver were the top contributors to the monthly increase, with prices up 0.3% in both cities from the previous month. Ona 12-month basis, new house prices in Toronto rose 7.1% and new house prices in Vancouver were up 5.2%.

Overall, monthly prices rose in 11 of the 21 cities surveyed by Statistics Canada, the data agency said.

Toronto and Vancouver are considered two of the frothiest housing markets in the country. Rapid price gains in those cities over the past year have prompted warnings from Canada's central bank and led policymakers to introduce tighter mortgage rules.

Write to Kim Mackrael at kim.mackrael@wsj.com

(END) Dow Jones Newswires

November 10, 2016 08:45 ET (13:45 GMT)

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