House price growth in Canada slows, but still solid

House construction in Canada slowed significantly last month after a building boom in September, but the sector is still expected to see strong activity over the next year. Growth in new house prices slowed in September for the tenth consecutive month, as Statistics Canada said prices increased 6.2 per cent from the same month last year. In August, the 12-month gain was 6.5 per cent. On a monthly basis, prices increased 0.3 per cent from August to September. The decline in housing starts in October reflects the exceptional strength in new construction in September rather than weakness in October. Overall, despite the tightening of lending conditions, the robust Canadian economy and favourable labour market conditions continue to bolster the important housing market in Canada. If you are thinking of buying a home, go ahead, it's still a good investment.