Proximity to transit now driving decisions about home purchase and office development, report says.

After rising steadily since 2008, Statistics Canada’s new housing price index has flattened out in September, following on a 0.1 per cent increase in August, but a new report says that's no cause for concern as Canadian real estate development will remain strong.

New housing prices fell in Edmonton, Windsor, Ottawa and Montreal, but those decreases were offset by a 0.5 per cent jump in Calgary, which is seeing higher labour and materials prices as it recovers from floods this summer.

The flat housing prices are no cause for concern, according to the Emerging Trends in Real Estate report from PriceWaterhouseCoopersand the Urban Land Institute.

Canada’s relative economic health, especially compared to our neighbours to the south, has kept residential real estate strong, says the report, released Wednesday.

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