The price of new housing jumped 0.8% in June, following an increase of 0.5% in May, Statistics Canada said today.

The New Housing Price Index, in which 1997 prices equal 100, was at 129.3 in June.

“Despite the month-over-month increase recorded in June, the rate of change for this index of contractors’ selling prices was 4.7% on an annual basis, only slightly larger than the 4.6% increase recorded in May,” the government agency said.

Prices rose in 12 of the 21 metropolitan areas surveyed, with Winnipeg recording a monthly jump of 3.0%.

Favourable market conditions coupled with a shortage of serviced lots were cited as the main reasons for this increase.

Significant increases were also recorded in Edmonton (up 1.6%), Calgary (up 1.3%) and Toronto-Oshawa (up 1.2%).

These jumps were driven by higher costs for building materials and labour as well as higher land values, StatsCan said.