Statistics Canada reported on Thursday the New Housing Price Index (NHPI) surged 1.9 percent m-o-m in April, following a 1.1 percent m-o-m gain in the previous month, as demand for housing remains strong, despite increasing construction costs.

According to the report, new home prices increased in 22 out of the 27 census metropolitan areas (CMAs) surveyed in April, with Windsor (+8.5 percent m-o-m, its highest increase since February 1981) recording the largest monthly advance in new home prices, as house prices in this area remained relatively more affordable compared with other hot markets in Canada.

In y-o-y terms, NHPI surged 9.9 percent in April, following a 7.9 percent climb in the previous month. This was the largest y-o-y increase since February 2007.