Rate of increase in cost of new homes slows.
August 17, 2005 - New home prices in Ottawa-Gatineau have risen 3.4 per cent in the past year, a pace that is below the national average and about half the increase seen in cities such as Winnipeg and Victoria. Statscan says its new home price index rose 0.8 per cent in June and is up 4.7 per cent on a year-to-year basis. Winnipeg topped the survey, with prices jumping three per cent in June alone, thanks to favourable market conditions and a shortage of serviced lots.New home prices in the Manitoba capital are 6.9 per cent higher than a year ago. Significant monthly increases were also recorded in Edmonton (up 1.6 per cent), Calgary (up 1.3 per cent) and Toronto (up 1.2 per cent), the result of higher costs for building materials and labour and higher land values. The increases in land values were attributed to higher costs associated with moving into new phases of developments.
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