Canada’s new home prices gain 0.2% led by Calgary

Greg Quinn, Bloomberg News, April 10, 2014 - Canada’s new home price index rose 0.2% in February led by gains in Calgary, the government’s statistics agency said. Prices in the Alberta city rose 0.9% from January on higher material and labor costs and the impact of a new provincial home-warranty program, Statistics Canada said Thursday from Ottawa. Toronto, Canada’s largest city, posted a 0.2% increase while Vancouver prices were unchanged.

Economists forecast the national index would rise 0.1%, according to the median estimate in a Bloomberg survey with seven responses. From a year earlier, new home prices increased 1.5% in February, matching the January pace. Calgary and Toronto led the annual gain, with new home prices rising 6.9% and 1.7%, respectively.

Earlier this week, Statistics Canada reported residential building permits fell 21% in February from a record, and Canada Mortgage and Housing Corp. said housing starts in March were at the slowest annual pace since the last recession.

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