Canada New House Prices Climb 1.2% in September

By Kim Mackrael

OTTAWA--Canadian new house prices surged in September, rising at their fastest pace in more than a decade as the effects of the pandemic fueled more interest in larger homes.

New house prices in Canada climbed 1.2% in September from the previous month, Statistics Canada said Wednesday. That marked the largest month-over-month increase in 14 years.

On a year-over-year basis, new house prices rose 3.2% in September, following a 2.1% year-over-year advance in August.

Prices rose in most major metropolitan areas in September. Statistics Canada said construction costs increased because of the influence of the pandemic on demand and supply of labor and building materials. Meanwhile, a growing buyer preference for larger homes also contributed to higher prices.

The new-house price index covers single-detached, semi-detached, townhouses and row homes. It doesn't incorporate condominium units.

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(END) Dow Jones Newswires

10-21-20 0906ET