New home construction slipped for the fourth consecutive month as the
red-hot housing market began to cool amid rising mortgage rates and the
biggest home price increase in 17 years. Total housing starts slipped
by just over 1,000 from the previous month to 216,800 units, the Canada
Mortgage and Housing Corp. said. Economists had expected a rise of
about 2,000 units at a seasonally adjusted annual rate.

Statistics Canada also released details on the national housing market
that show rocketing prices, especially in booming Western Canada.The
analyst said the new housing price index rose 1.2 per cent in April to
138.2, the biggest month-to-month jump in 17 years.Prices rose in 14 of
the 21 metropolitan areas surveyed, the agency said.Calgary continued
its lead with a monthly increase of 4.7 per cent in April. New home
costs were 34.8 per cent more than they were a year ago. Edmonton
ranked as the second-highest price increase. There, the prices jumped
3.9 per cent in May, from a month earlier - and increase of 18.6 per
cent from a year ago. Regina, Montreal, Vancouver also saw significant
increases. Rising demand, increased costs for materials and labour and
higher land values combined to push the prices up, Statistics Canada
said.

Check out www.canadianhomemortgages.com for more mortgage info.

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