OTTAWA, Dec 10 (Reuters) - New home prices in Canada rose
more than expected in October, led by more expensive prices in
the Toronto area's robust housing market, data from Statistics
Canada showed on Thursday.
Prices rose 0.3 percent, exceeding economists' forecasts for
a slight gain of 0.1 percent. The Toronto and Oshawa region was
the largest contributor to the increase, rising 0.5 percent as
builders cited market conditions and the higher cost of land.
National prices were up 1.5 percent compared to last
October, the largest year-over-year increase since December
2014. The Toronto and Oshawa market saw its biggest annual gain
since January 2013 with a gain of 4.0 percent.
Prices were unchanged for the third month in a row in
Calgary, which has seen prices fall in the last year amid the
slump in oil.
The new housing price index excludes apartments and
condominiums, which the government says are a particular cause
for concern and which account for one-third of new housing.
The ongoing increase in home prices, especially in the hot
markets of Toronto and Vancouver, has raised concerns over
whether Canadians have taken on more debt than they can handle,
spurred by years of low interest rates.
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Graphic - Canada new housing prices http://link.reuters.com/nep62t
Graphic - Canada economic dashboard http://graphics.thomsonreuters.com/15/sc-canada/index.html
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