The cost of new housing accelerated for the second straight month in January, the result of a strengthening housing market in the Atlantic and Prairie provinces, Statistics Canada reports.

Nationally, contractors’ selling prices rose 6.5% between January 2007 and January 2008.

StatsCan said that prices were up 0.6% from December.

Housing prices rose fastest in Saskatoon, with an annual price increase of 51.7% and 4.5% higher than in December.

The governement agency said the increase was due to increased costs for material and labour, as well as strong market conditions and increased demand for land.

In Regina, the year-over-year increase was 25.9% and unchanged from December.