Statistics Canada reported on Thursday the New Housing Price Index (NHPI) rose 0.2 percent m-o-m in September, following a 0.1 percent m-o-m gain in the previous three months.

Economists had forecast the NHPI to increase 0.1 percent m-o-m in September.

According to the report, Kitchener-Cambridge-Waterloo (+1.5 percent m-o-m) registered the largest price advance in September, as favourable market conditions and more affordable prices relative to Toronto continued to influence demand in the region. The price of new homes surged by 1.0 percent m-o-m in both Ottawa and Trois-Rivières, supported by construction costs and favourable market conditions. Meanwhile, new home prices fell in Vancouver (-0.6 percent m-o-m) and Kelowna (-0.3 percent m-o-m) in September.

In y-o-y terms, NHPI fell 0.1 in September after dropping 0.3 percent in the previous month. That marked the fourth consecutive drop.