A Statistics Canada report suggests housing prices in Canada’s largest city are continuing an upward trend, recording the greatest year-over-year increase in the country. Toronto and Oshawa saw a 6.2 per cent increase in new housing prices between November 2011 and a year earlier.
Winnipeg and Regina followed with a 5.8 per cent and 5.3 per cent increase respectively, the new housing price index shows.
The Toronto market remained strong because demand outstripped supply, said Gino Romanese, senior vice-president for Royal LePage Real Estate Services Ltd. “Inventory has been a challenge for Toronto’s potential buyers throughout 2011 and this restricted supply has put upward pressure on prices,” Romanese said in a statement issued Thursday.
Between October and November 2011, new housing prices rose 1 per cent in Toronto and Oshawa. The Statistics Canada report showed a drop in new housing prices during November in Calgary and Vancouver by 0.4 per cent and 0.3 per cent respectively.
Some builders in Calgary reportedly lowered their prices to stimulate sales after three consecutive months of price increases, Statistics Canada said in its report. The national new housing price index increased 0.3 per cent in November and 2.5 per cent since November 2010.
Royal LePage president and CEO Phil Soper said he expects the Canadian housing market will continue to stay strong.
“The industry has significant momentum entering the year, and buoyed by the stimulative effect of very low interest rates, we expect the market to continue to expand, albeit at a slower pace,” Soper said in a statement.
Source: CTV News