Home prices increasing

Prices for new homes in Vancouver rose at the national average of 6.5 per cent between January and the same month last year, Statistics Canada says.

New home prices for the city climbed at a much slower rate between December and January, eking out an increase of just 0.1 per cent, the federal agency said in a report released yesterday.

Nationally, prices rose by 0.6 per cent in this period.

Victoria's year-over-year prices in January climbed 1.6 per cent. The city posted a month-to-month gain of 0.3 per cent, StatsCan said.

The year-over-year rise of 6.5 per cent for Canada as a whole represents an increase over the corresponding figure of 6.2 per cent for December, the agency said.

The national outcome was shaped by stronger housing markets in the Atlantic and Prairie provinces, StatsCan said.

Prices appreciated at the fastest pace in Saskatoon, which led the country with an annual price increase of 51.7 per cent.

Regina was the national runner-up with a 25.9-per-cent jump.

Higher costs for material and labour, as well as strong market conditions and increased demand for land, contributed to this sharp rise, StatsCan said.

The report showed a slight slowdown in the yearly figures for increases in prices in Calgary.

Prices for new homes there rose 5.6 per cent from January 2007 to January 2008, a slight drop from the December yearly gain of six per cent.

The month-to-month gain for Calgary was 0.3 per cent.

Builders in Calgary faced increased costs for material and labour.

Still, a number of other builders brought down their prices to encourage sales, StatsCan said.

In addition, market conditions allowed some developers in Calgary to boost their lot prices.

Slower market conditions in Edmonton were reflected in a monthly decline of 0.5 per cent.

But the year-over-year increase for the city was 19 per cent.

An increase in material and labour costs contributed to a yearly rise in the price of new homes of 11.4 per cent in Halifax and 9.1 per cent in St. John's, the report said.

(prepared by Paul Luke/Vancouver Province)