Canadian new house prices surged for a second straight month in May, driven by gains in the Toronto and Vancouver markets.
Vancouver's new-house prices rose at their fastest pace in a decade. Meanwhile, other markets surrounding Toronto also recorded healthy gains, in another sign buyers who can't afford homes in Canada's biggest city are purchasing real estate elsewhere in the province of Ontario -- and, in turn, driving up costs in those communities.
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Canada's new housing price index increased 0.7% in May on a month-over-month basis, Statistics Canada said Thursday. Market expectations were for a smaller 0.3% gain, according to economists at Royal Bank of Canada.
May's gain follows the previous month's 0.8% increase in the new-house price index.
On a 12-month basis, Canadian new house prices increased 3.8% in May.
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(END) Dow Jones Newswires
July 13, 2017 08:45 ET (12:45 GMT)