While housing prices have plateaued in many provinces and even dropped out west, Newfoundland & Labrador's capital city is still enjoying a housing boom according to Statistic Canada's New Housing Price Index:

The agency released the New Housing Price Index on Friday, which finds over the period of August 2007 and August 2008, the average cost of a new home in Canada was 2.3 per cent higher.

Meanwhile, prices were virtually unchanged between July and August of 2008.

The cost in St. John's rose 23.7 per cent as builders reported higher material, labour and land development costs.

Some of the trend can be possibly explained by the fact Newfoundland has been in demand for vacation homes by Americans and Europeans as of late. Halifax was listed at an above average value of 7.3%.