The prices of new homes in Canada rose April, increasing more than analysts had predicted, according to the latest data supplied by Statistics Canada.
Statistics Canada's new home price index appreciated 0.3 per cent in April - the fifth gain in the past six months. The index has increased 1.9 per cent year-on-year.
Canada property analysts were anticipated a 0.1 per cent rise in the new home prices following little movement in the market in March.
With strong demand for homes in Canada, the overall market has been performing well in recent months.
Additional research by Scotia Capital economist Adrienne Warren shows that the average price of a residential property in Canada escalated by five per cent during the first quarter of 2011 compared to the corresponding period last year.
"Housing sales in Canada, while below the record-setting pace seen at the height of the boom in 2005-2007, are being supported by steady job creation and still attractive borrowing costs," Warren commented. "Relatively tight supply is adding to price pressures in several cities."
According to the Statistics Canada report, property prices in Ottawa-Gatineau and Toronto are leading the gains, with prices rising 1.3 per cent and 0.6 per cent, respectively.
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