The prices of new homes in Canada rose by 0.1 per cent in May from April, pushed higher by strength in the western Prairie region, Statistics Canada said on Thursday.
The increase was less than the 0.2-per-cent advance forecast by market operators. On a year-over-year basis, prices grew by 1.5 per cent compared to 1.6 per cent in April.
Prices in the Alberta city of Calgary, the capital of Canada’s energy region, jumped 0.8 per cent from April, on higher material, labour and land costs.
Elsewhere in Alberta, prices in the provincial capital Edmonton rose by 0.3 per cent. In neighbouring Saskatchewan, also in the west of Canada, new-home prices in the city of Regina increased by 0.4 per cent.
The Canadian federal government, which has intervened in the mortgage market several times since 2008 to cool the sector, has long expressed concerns the housing market might overheat, though it thinks a soft landing is more likely.
The new-housing price index excludes condominiums, which the government says are a particular cause for concern.
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