According to Statistics Canada, new house prices in Canada increased 0.7 percent in May, with Toronto and Vancouver largely responsible for the gain.
Toronto was the largest contributor to the national gain, rising 1.1 percent from April to May. Builders linked higher prices to market conditions, a shortage of developed land and higher construction costs.
Prices for new houses in Vancouver rose for a third consecutive month, up 2.2 percent in May and the largest increase for this census metropolitan area since May 2007. Builders cited favorable market conditions as the main reason for the gain.
Builders in Guelph (+1.7 percent), London (+1.5 percent) and St. Catharines–Niagara (+0.9 percent) also reported market conditions as the primary driver of higher new house prices.
Prices were down in five metropolitan areas and unchanged in nine.
New house prices in Canada rose 3.8 percent over the 12-month period ending in May, led by a 9.0 percent increase in Toronto.