Prices for new Canadian homes are rising at the fastest rate in more than 30 years.
Home prices rose 1.9% in February from January, according to Statistics Canada, the fastest one-month increase since 1989.
The latest data confirms that Canada’s housing market is running at a white-hot pace, with record low interest rates, tight inventory levels and demand for more space pushing sales and prices to new highs.
"As prices increase, the purchase of a house will become less affordable as bidding wars continue to overheat an already active market," said Statistics Canada in its report.
Vancouver’s new-home prices led the price 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%.
Statistics Canada’s housing data covers new single homes, semi-detached homes and town homes, but it does not include condominium sales.
