|The housing market in the USA has been a bright spot in the economy. People are fleeing the cities, and the prospect of working from home has resulted in heightened consumer demand for new construction and home renovations. While fear may be a factor, it should be noted that confidence among single-family home builders increased to a record high in October. Shortages of lots, labor, lumber and other key building materials are increasing costs and lengthening construction times.
Canada has long been a ‘price taker’ as opposed to a ‘price maker’ for building components in the residential house sector. Increased activity in the US and buoyant market conditions here in Canada have resulted in upward pressure on construction costs. According to The Canadian Press, home builders say this will translate into an increase of $8,000 to $10,000 to build a typical single family house in Canada. In August, spruce, pine and fir 2” x 4” boards were at US $760 per 1,000 board feet: up $82 in one week!
This month’s market stats point to similar trends in the Comox Valley and in Campbell River. Sales volumes and average prices are both up.