http://www.calgaryherald.com/business/Calgary+home+price+growth+best+Canada/8902836/story.htmlCalgary new home price growth best in Canada
5.8% year-over-year hike best since December 2007
CALGARY - The Calgary region experienced the best year-over-year price growth for new homes across the country in July, according to Statistics Canada.
The federal agency reported Thursday that the New Housing Price Index for the Calgary census metropolitan area rose by 5.8 per cent from July 2012.
“This was the largest price movement in Calgary since December 2007,” it said.
Across Canada, the index was up 1.9 per cent from a year ago.
On a monthly basis, prices in Calgary increased by 0.6 per cent while throughout the country they were up 0.2 per cent.
Statistics Canada said “increased material and labour costs as well as a shortage of developed land contributed to higher prices in Calgary. Calgary has been a top contributor to advances in new housing prices over the past eight months.”
Ben Brunnen, a Calgary economic consultant, said Calgary is a strong economy right now, and there are a lot of factors driving residential housing demand.
“Persistently low unemployment compared to other parts of Canada have drawn lots of interprovincial migrants to our city,” said Brunnen. “This increases housing demand and, when combined with low vacancy rates, really puts pressure on house prices.
“New home construction costs are also on the rise in Calgary, driven in part by labour shortages from the June floods. Expect to see Calgary home prices continue to grow into 2014.”
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