OTTAWA —_Prices for new homes edged up in September, led by the Toronto area, Statistics Canada said Wednesday.

The federal agency said prices rose 0.2 per cent during the month, following a 0.1 per cent gain in August. It was the sixth the straight monthly increase in the agency's new housing price index.

Economists had expected prices to rise by between 0.1 and 0.2 per cent in September.

The Toronto and Oshawa, Ont. region —_accounting for 27 per cent of the index —_recorded a gain of 0.3 per cent. The smaller Winnipeg region had the largest percentage increase at 1.4, and Halifax gained 0.7 per cent.

"In Winnipeg, price increases were primarily the result of higher material and labour costs as well as higher land values," Statistics Canada said. "Builders in Halifax cited higher material and labour costs as the main reason for their price increases."

Prices were higher in eight of the 21 metropolitan regions surveyed, while five declined and eight were flat.

Among the regions posting declines, the biggest drop was in the New Brunswick area encompassing Saint John, Fredericton and Moncton, where the index declined 0.3 per cent. The Edmonton area was also down 0.3 per cent.

"Some builders in Saint John, Fredericton and Moncton cited slower market conditions as the primary reason for their price decreases, while a few builders in Edmonton moved to new development areas with lower priced lots," the agency said.

On a year-ove-year basis, prices were up 2.3 per cent in September, in line with 12-month increases in July and August.

The biggest 12-month gains in September were in Winnipeg, up 5.5 per cent, and the Toronto and Oshawa region, up 5.4 per cent.

On Tuesday, Canada Mortgage and Housing Corp. reported housing starts were down 1.1 per cent to an annualized rate of 207,600 units. That compared to 208,800 the month before, revised up from the previously reported 205,900.

Meanwhile, data last week showed construction intension weakened in September, as the value of building permits declined for the third straight month.

Statistics Canada said permit values fell 4.9 per cent to $5.6 billion during the month.

Home price index (% change September from August):

St. John's 4.1

Charlottetown 2.8

Halifax 2.4

Saint John, Fredericton and Moncton, N.B. 0.1

Quebec 1.5

Montreal 1.7

Ottawa-Gatineau 3.5

Toronto and Oshawa, Ont. 5.4

Hamilton 0.4

St. Catharines-Niagara, Ont. -0.8

London 1.3

Kitchener-Cambridge-Waterloo, Ont. 3.2

Windsor, Ont. -3.4

Greater Sudbury and Thunder Bay, Ont. 1.8

Winnipeg 5.5

Regina 5.1

Saskatoon 1.2

Calgary -0.5

Edmonton 0.6

Vancouver 0.1

Victoria 0.0

Source: Statistics Canada