Kutyn property appraisals

Market Minute

US Single-Family Homebuilding Accelerates

by Christopher Kutyn

US Single-Family Homebuilding Accelerates
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.

Comox Valley, November 2020 VIREB stats

Single Family Houses Sold

843 8.8% YTD
876 9% 12MTD
$ 680,982 10.5% 12MTD

Campbell River, November 2020 VIREB stats

Single Family Houses Sold

504 11.75% YTD
519 11.4% 12MTD
$ 558,468 10.7% 12MTD
“The rights of Man come not from the generosity of the state, but from the hand of God." John F. Kennedy, Inaugural Speech, 20th January 1961

Christopher Kutyn

Chris has been appraising Real Estate for over 30 years and has served on the board for the local chapter of the Appraisal Institute of Canada.

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