New home prices rise slightly

Statistics Canada reported Tuesday that its New Housing Price Index increased 0.2 per cent in September after a 0.1 per cent increase in August.

The federal agency said Montreal led the increase with a 1.6 per cent rise, and Calgary followed with a 0.3 per cent gain.

The increases in the two cities were due in part to builders moving to new areas with higher land development fees, StatsCan said.

Prices remained unchanged in eight of 21 cities.

Prices declined by 0.4 per cent in both Vancouver and Victoria and edged down 0.1 per cent in Hamilton.

The index was up by 2.7 per cent compared with September 2009, with Toronto and Oshawa, Montreal and Vancouver, the main contributors to the increase.

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Pam Martin, Invis, Mortgage Broker, Mortgage Rates, Kelowna,Vernon, Penticton, Okanagan, British Columbia, Canada