Canadian new home prices up 0.4 percent in July

Canadian new home prices up 0.4 percent in July

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According to Statistics Canada, in most housing markets across Canada, demand for new single-family homes increased in July, as did the price of new houses.

A number of builders noted increasing construction costs due to supply disruptions, delays and lower efficiencies resulting from the pandemic. Hotter markets were particularly affected, including Ottawa and Montréal, where continuous delays are causing additional costs for builders.

Prices rose for the third consecutive month at the national level, up 0.4 percent in July, with central Canada leading the way. In Ontario, 9 out of 10 new housing markets surveyed posted increases, while in Quebec, 4 out of 5 of census metropolitan areas (CMAs) recorded price gains.

With more people working from home, the pandemic may have had an impact on the preference of buyers for the types of homes that are tracked by the New Housing Price Index. These include singles, semi-detached houses and townhomes, which typically offer more living space than apartments.

At the national level, new house prices rose 1.7 percent during the 12-month period ending in July—the largest increase since March 2018.

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