Kristin Goff
The Ottawa Citizen
Wednesday, June 12, 2002
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The national capital region's hot housing market produced the biggest jump in new home prices in the nation in April.
Prices of new homes jumped 2.3 per cent in April, over March, in Ottawa-Gatineau, Statistics Canada reported yesterday. The region also continued to lead the country in price gains over the past 12 months, as it has for the past 21 months.
Prices in April were eight-per-cent higher than April 2001, Statistics Canada reported.
High demand from buyers was the major reason for the latest round of sharp increases, but higher costs for materials and services also played a role, Statistics Canada said in the report.
Its price changes are based on an index that measures contractors' selling prices for new homes, against a 1992 base of 100. Ottawa-Gatineau's index in April reached 128.6.
Overall prices rose just 0.6 per cent in Canada in April from March, bringing the 12-month gain to 3.7 per cent.
Montreal had the second-highest monthly increase at 2.3 per cent. Edmonton, at 6.1 per cent, had the second-highest year-over-year gain.
While the Statistics Canada report doesn't deal in dollar costs, Corporate Research Group has previously estimated average new home prices reached $245,000 in April, up about $10,000 from six months earlier.
Many builders have been increasing prices by $2,500 or more in recent months, partly to pass through the costs of higher development charges, according to Paul Knowlton, an analyst at Corporate Research, which surveys builder sales and pricing for the Ottawa-Carleton Home Builders' Association.
Its latest survey showed those increases continued in May when price increases were reported at 21 developments, commonly in the $2,500 to $10,000 range.
The Ottawa Citizen
Wednesday, June 12, 2002
ADVERTISEMENT
The national capital region's hot housing market produced the biggest jump in new home prices in the nation in April.
Prices of new homes jumped 2.3 per cent in April, over March, in Ottawa-Gatineau, Statistics Canada reported yesterday. The region also continued to lead the country in price gains over the past 12 months, as it has for the past 21 months.
Prices in April were eight-per-cent higher than April 2001, Statistics Canada reported.
High demand from buyers was the major reason for the latest round of sharp increases, but higher costs for materials and services also played a role, Statistics Canada said in the report.
Its price changes are based on an index that measures contractors' selling prices for new homes, against a 1992 base of 100. Ottawa-Gatineau's index in April reached 128.6.
Overall prices rose just 0.6 per cent in Canada in April from March, bringing the 12-month gain to 3.7 per cent.
Montreal had the second-highest monthly increase at 2.3 per cent. Edmonton, at 6.1 per cent, had the second-highest year-over-year gain.
While the Statistics Canada report doesn't deal in dollar costs, Corporate Research Group has previously estimated average new home prices reached $245,000 in April, up about $10,000 from six months earlier.
Many builders have been increasing prices by $2,500 or more in recent months, partly to pass through the costs of higher development charges, according to Paul Knowlton, an analyst at Corporate Research, which surveys builder sales and pricing for the Ottawa-Carleton Home Builders' Association.
Its latest survey showed those increases continued in May when price increases were reported at 21 developments, commonly in the $2,500 to $10,000 range.
