Statistics Canada reported on Thursday the New Housing Price Index (NHPI) rose 0.7 percent m-o-m in January2021, following a 0.3 percent m-o-m advance in the previous month.

Economists had forecast the NHPI to increase 0.5 percent m-o-m in January.

According to the report, new home prices increased in 22 out of the 27 census metropolitan areas (CMAs) surveyed in January, with Hamilton (+3.9 percent m-o-m) and Charlottetown (+3.3 percent m-o-m) recording the largest monthly gains in new home prices, mainly due to higher construction costs.

In y-o-y terms, NHPI surged 5.4 percent in January, following a 4.6 percent climb in the previous month. This was the largest y-o-y increase since March 2008.