07/14/2016 11:36 EDT

New Housing Price Index Up 0.7 Per Cent In May, Biggest Increase Since July 2007

Andre Kudyusov via Getty Images

OTTAWA — Statistics Canada says its new housing price index gained 0.7 per cent in May, its largest monthly increase since July 2007.

The agency says the rise was mainly driven by higher new housing prices in the combined region of Toronto and Oshawa, Ont., and in Vancouver.

The index for the combined region of Toronto and Oshawa was up 1.9 per cent in May, the biggest contributor to the overall increase and the largest jump for the region since 2004.

(Chart: Statistics Canada)

Statistics Canada says builders cited market conditions and the higher cost of land as the reasons for the gain, which was the biggest in that area in 27 years.

New housing prices rose 1.1 per cent in both Vancouver and Victoria.

The index fell in Regina and Charlottetown.

For the 12-month period ended in May, the index was up 2.7 per cent, the largest increase since September 2010.

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