New Home Prices in Canada See their Largest Monthly Increase in 3-years

Statistics Canada reported on Monday (9/21) that its New House Price Index (NHPI), which tracks the price of newly built homes, rose by 0.5% in August. The fourth straight month of increases and the largest increase in NHPI since May of 2017. For the year as a whole, the index is up 2.1%. That is its highest level in the NHPI in more than two years, dating back to March 2018. The data agency says homebuilders expect the record high lumber prices this year will most likely add an extra $5,000 to $10,000 to the cost of a single-family house. According to the agency, “In the short term, it is expected that the shortage of lumber and building supplies will persist due to the uptick in homebuyer demand, the increased renovation activities in North America, as well as the lingering effects of the reduced operations at sawmills earlier this year.”

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New home prices see biggest monthly jump in 3 years as lumber prices soar