New home prices in October rose at their lowest monthly rate since July 2005, Statistics Canada reported Monday.

Moderation in price increases took place in most markets — including many in Western Canada, where prices have been surging.

Calgary new home prices have recorded their first drop in almost two years

Statistics Canada said its new housing price index rose by only 0.2 per cent in October. On a year-over-year basis, prices of new homes were up 11.4 per cent.

The average price of a new home in Calgary fell by half a percentage point. That's a turnaround from the torrid pace of price growth seen as recently as this summer, when prices rose by more than eight per cent in July and August.

The October price drop in Calgary was the first since November 2004. Prices were still 53.5 per cent higher than they were a year earlier.

Victoria and Windsor were among five other communities that registered price drops. Eleven of the 21 metropolitan areas surveyed showed price increases.

Edmonton's new housing market still showed some price strength, as prices grew 2.2 per cent in October and 41.1 per cent over the year.

Statistics Canada's new housing price index reflects increases in the cost of contractors' selling prices. Construction material costs, trade labour rates and land costs are the main drivers of new home prices.