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A real estate for sale sign is pictured in front of a home in Vancouver, British Columbia on Oct. 4, 2016.Ben Nelms/The Globe and Mail

Statistics Canada's index for tracking new housing prices rose 0.2 per cent in August compared with July, driven by gains in Toronto and Oshawa, Ont.

The agency says the combined region of Toronto and Oshawa gained 0.7 per cent as builders cited market conditions and higher costs for materials.

Kitchener–Cambridge–Waterloo, Ont., gained 0.5 per cent, while the combined region of Greater Sudbury and Thunder Bay, Ont., added 0.4 per cent.

New house prices fell 0.5 per cent in Regina due to promotional packages to encourage sales and Saskatoon dropped 0.2 per cent.

The new housing price index was up 2.7 per cent compared with a year ago.

The combined region of Toronto and Oshawa was the biggest contributor to the increase with a 7.0 per jump from August 2015.

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