Canadian new home prices up 1.2 percent in September

Wednesday, 21 October 2020 21:13:19 (GMT+3)   |   San Diego

According to Statistics Canada, new home prices were up 1.2 percent in September following a 0.5 percent increase in August. New home prices increased in 24 of the 27 census metropolitan areas (CMAs) surveyed. Builders across the nation primarily linked the gain to higher construction costs, mainly driven by the impact of the pandemic on the demand and supply of labor and materials. The shift in buyer preference for larger homes also contributed to the rise in new housing prices.

Nationally, new house prices increased by 3.2 percent during the 12-month period ending in September, following a 2.1 percent year-over-year increase in August. The September rise in prices was the largest since January 2018.

New housing prices may continue to rise as demand for single-family homes remains high, as buyers continue looking for larger living spaces, Statistics Canada said. The higher cost of building materials, combined with historically low mortgage rates, could further contribute to the rise in new housing prices.

Most Recent Related Articles

US construction employment rises in November

US construction spending up 1.3 percent in October

Value of Canadian building permits declines 14.6 percent in October

New house prices in Canada rise 0.8 percent in October

Investment in Canadian building construction down 1.7 percent in September