The price of a new home in Canada increased on both a monthly and yearly basis during October as supply constraints persisted in some regions.
In its New Housing Price Index for October 2021, Statistics Canada reported that national new home prices grew by 0.9 per cent from September to October. This marks a slightly higher increase compared to the last four months, the federal department noted. On an annual basis, new home prices rose 11.5 per cent in October, a growth rate that has not been seen since 2006.
Out of the 27 census metropolitan areas (CMAs) analysed in the report, monthly prices increased in 15 of those communities, while 10 recorded no change and two CMAs saw prices drop. Year-to-year, prices were up in all 27 CMAs.
Kitchener–Cambridge–Waterloo in southeastern Ontario experienced the largest increase in new home prices, where values jumped by 3.8 per cent month-to-month. According to data from the Kitchener Waterloo Association of Realtors, the benchmark price for all residential properties was $803,900, up 2.5 per cent from September.
Similarly, London, Ont. saw new home prices increase 2.4 per cent from September to October, with the London St. Thomas Association of Realtors reporting a 2.9 per cent rise in the benchmark price for all residential properties to $613,900.
Compared to the other 27 CMAs, Kitchener–Cambridge–Waterloo also reported the largest annual price gains, with the cost of a new home climbing 29.2 per cent year-to-year.
“Given the proximity of the two cities to Toronto, demand for homes has also been coming from buyers outside the London and Kitchener–Cambridge–Waterloo region, driving home prices further up in a market with persisting low supply, and creating a barrier for some local buyers,” explained the StatsCan report.
On the opposite side of the country, Victoria, B.C saw monthly new home prices jump 3.3 per cent, the largest increase on record since May 2002. Active listings in the city diminished “due to sustained demand.” In October, there were 1,036 homes available for sale, 7.8 per cent fewer than the previous month according to the Victoria Real Estate Board.
“If competition for homes continues in Victoria, upward price pressure should persist given the historically low supply,” said the report.
By province, new home prices in Ontario, British Columbia and Quebec were up 1.2 per cent, 1.1 per cent and 0.2 per cent month-to-month. Alberta, Nova Scotia, Prince Edward Island and Newfoundland and Labrador reported no changes in new home prices during October.
Major provincial cities such as Toronto, Ottawa, Vancouver and Montreal saw monthly new home prices grow 1.3 per cent, 0.5 per cent, one per cent and 0.2 per cent from September to October.
