New home prices top pre-recession peak

New-home prices were up more than expected in November, according to data released by Statistics Canada on Wednesday.

The new-housing price index rose 0.3% that month, beating economists’ expectations for a 0.1% gain, which would have matched the rise in October.

The latest data shows new-home prices have more than fully recovered from losses sustained during the recession.

Some of the biggest gains in particular cities were 4.2% in St. John’s, 1.6% in Ottawa-Gatineau and 1.2% in Halifax.

Higher costs for labour and materials were cited as some of the main causes of higher new-home prices in November, and for St. John’s in particular, bigger development fees.

Some areas, such as Victoria, Charlottetown, and Ontario’s Windsor and St. Catharines-Niagara regions saw lower new-home prices in November.

Year-over-year, the new-home price index was up 2.3% in November, down from 2.5% in October. Wednesday Jan 12

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