Canada home prices rising at fastest rate 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.

“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.

MBN

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