The October pace of growth was faster than the rate seen over the prior four months
Last month, residential sales prices increased in 15 of 27 major census metropolitan areas surveyed by Statistics Canada.
Prices remained static in 10 CMAs and declined in two, Statistics Canada said. On the national level, new home prices ticked up by 0.9% month-over-month in October, outstripping the growth observed over the prior four months.
Some of the greatest monthly increases were seen in the Kitchener-Cambridge-Waterloo area (3.8%) and London (2.4%). Regional dynamics had a substantial impact on these two markets in particular, Statistics Canada said.
“Given the proximity of the two cities to Toronto, demand for homes has also been coming from buyers outside the London and Kitchener-Cambridge-Waterloo region, driving home prices further up in a market with persisting low supply, and creating a barrier for some local buyers,” Statistics Canada said.
Benchmark prices stood at $803,900 in Kitchener-Cambridge-Waterloo (up 2.5% from September) and at $613,900 in London (up 2.9%), according to local real estate associations.
Other markets with strong monthly increases were Victoria (3.3%), Winnipeg (1.7%), and Regina (1.4%), Statistics Canada said.
New home prices grew by 11.5% annually in October, a pace not seen since 2006, Statistics Canada said. The largest gain was in the Kitchener-Cambridge-Waterloo area (29.2%), which has been seeing unprecedented annual increases since April. This was followed by Ottawa (24.8%) and Windsor (21.9%).