In line with the forecast of the economists, housing prices are soaring high in Canada.

Reports from Statistics Canada claim that the prices of new homes in Canada rose by 0.3% in March. The figures also rose by a 0.1% in the previous month.

Figures also highlight that, the new house price index increased by 1.6 %in March from the year earlier. In comparison to the February figure that witnessed an annual increase of 0.9%.

The agency reports claim that the growth is attributed due to the high home prices in Vancouver.

The prices change over time in the selling prices of new houses is measured by the new housing price index.

Prices in Montreal and Kitchener and London city in Ontario witnessed the biggest month-to-month jump in the index figures. The reason for the jump is due to higher material costs in the areas.

Further, the biggest decrease in the index was witnessed in Charlottetown and Hamilton. The figures between March and February sharply declined as the builders in the areas negotiated lower selling prices.

As reported by the agency, from the total of 21 metropolitan regions included in the index, Victoria, Edmonton and Charlottetown were the only areas' to report year-over-year declines.

In the wake of the recovery of the real estate sector, Canada Mortgage and Housing Corp. reported that the home construction rose by 1.3%in April.