New Home Prices in Canada Increase Month-Over-Month and Year-Over-Year in February
New Housing Price Index, February 2022
Statistics Canada (StatsCan) reported today (3-18-22) that new home prices in Canada increased 1.1% month-over-month in February. Year-over-year (February 2021 – February 2022), they increased 10.9%. Prices increased in 18 of the 27-census metropolitan areas and were unchanged in 9.
According to data included in the report, new home builders in Canada continued to see increases in their construction costs for materials and labor in February. Softwood lumber once again saw large gains in market value, having increased 15.0% in January (following a 31.8% rise in December 2021).
In addition to the price increase for the softwood lumber component of the Industrial Product Price Index (IPPI), recent price gains have been observed for many other materials used in the construction of new homes, such as furniture and fixtures, as well as cement, glass, and other non-metallic mineral products.
Cities reporting the biggest month-over-month increases in new-house prices were Calgary, Alberta (where prices rose 3.8% in February), and the city of Quebec (where prices advanced 2.9%).
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