Canadian New-Home Prices Rising at Fastest Pace in Three Decades

Newly built Canadian homes are rising faster in price than at any time in more than three decades.

Prices rose 1.9% in February from the previous month, according to data released Thursday by Statistics Canada, the fastest one-month increase since 1989.

The data confirm that the country’s housing markets are running at a red-hot pace, with record low interest rates, scant inventory and demand for more space pushing up sales activity and prices to new highs.

Canadian New-Home Prices Rising at Fastest Pace in Three Decades

“The continued strength in new housing prices may be an obstacle for some potential buyers to secure a new home. As prices increase, the purchase of a house will become less affordable as bidding wars continue to overheat an already active market,” the Statistics Canada report said.

Vancouver’s new-home prices led the gains, rising 4%, but increases were widespread across the country, with prices up in 22 of 27 cities. On the year, new home prices rose 7%.

The data cover new single homes, semi-detached homes and town homes but not condominiums.

©2021 Bloomberg L.P.

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