Canadian new home prices up 0.1 percent in August

Thursday, 22 September 2022 21:39:20 (GMT+3)   |   San Diego
       

According to Statistics Canada, in August, new home prices for Canada increased 0.1 percent for the second consecutive month. In August, prices were unchanged in most of the 27 census metropolitan areas (CMAs) surveyed; prices were up in four CMAs and down in one.

Activity in the new residential construction sector was ongoing in August despite the continued turbulence in this market. Higher construction costs, caused by earlier supply chain disruptions and rising labor costs, pushed prices of new homes up and left developers with less flexibility to adjust to the market conditions. In the second quarter of 2022, the Canadian Home Builders' Association reported that 93 percent of builders indicated that lumber prices are a continued issue contributing to the increased prices of new homes. In contrast, on the resale market, prices were forced down by higher interest rates aimed to moderate demand. Multiple real estate associations across the country reported slowdowns in sales activity starting in April 2022, following the interest rate increases by the Bank of Canada that began in March 2022.

Nationally, the year-over-year growth continued to moderate in August, with new home prices rising 6.9 percent, the smallest increase since January 2021. Calgary (+14.9 percent) once again recorded the largest year-over-year increase in new home prices, followed by Winnipeg (+13.4 percent) and Kitchener–Cambridge–Waterloo (+11.9 percent).


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