New Home Prices Inch Up in Canada

Ottawa, Ontario, October 11, 2007–The price of new homes in Canada rose 0.4% in August from July and 6.5%from August 2006, Statistics Canada said on Thursday.

Analysts had expected a 0.6% gain.

New housing prices are still rising, especially in booming areas in Western Canada, but the pace has slowed gradually over the past 12 months. In July prices were up 0.9% in the month, and up 7.7% from July, 2006.

Generally, housing in Canada has not yet felt the effects of the U.S. housing downturn and collapse of the subprime mortgage market.