Canadian new home prices up 0.4 percent in July

Friday, 20 August 2021 17:56:36 (GMT+3)   |   San Diego

According to Statistics Canada, new home prices in Canada (composite of 27 census metropolitan areas) grew at their slowest pace since December 2020.

Nationally, new home prices were up 0.4 percent in July. Prices in Toronto (+0.2 percent) and Vancouver (+0.3 percent), Canada's most expensive cities, grew at a slower pace than the national average.

Prices were up in 19 of the census metropolitan areas (CMAs) surveyed, led by Oshawa (+4.3 percent). Oshawa enjoys proximity to the neighboring Toronto region, and thus has seen new home prices rise on account of telework and a need for larger homes, and because it is a cheaper alternative for those who commute to Toronto. The Durham Region Association of Realtors reported that all home types listed in Oshawa took an average of only 11 days to sell.

One of the more affordable areas in Ontario, Greater Sudbury, saw new home prices rise 1.9 percent in July. Continuing low supply contributed to the price increase. Inventory levels were down to 1.1 months, below their historical average of 5.1 months, while active listings were down to 319 units, the lowest number in more than thirty years for the month of July according to the Canadian Real Estate Association.

Nationally, new home prices were up 11.9 percent year over year in July, with the house structure (+14.1 percent) rising more than the land (+6.7 percent). According to the Building Construction Price Index, construction prices were up year over year by almost a quarter for single-detached houses (+23.9 percent) and townhouses (+24.4 percent) in the second quarter of 2021.

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