Canada's new home prices dropped 0.1 percent for the third consecutive month in July of 2019, while markets had forecast prices to remain unchanged. Edmonton (-0.8 percent) reported the largest price decrease in July, with builders offering promotions and cash rebates to stimulate sales. Also, prices fell in Toronto (-0.6 percent) and Vancouver (-0.5 percent), amid unfavourable market conditions and lower negotiated selling prices. On the other hand, prices continued to increase in Montréal (1.6 percent) and Ottawa (0.9 percent). Year-on-year, new house prices went down 0.4 percent, the largest decrease in almost a decade. Housing Index in Canada averaged 67.43 Index Points from 1981 until 2019, reaching an all time high of 103.30 Index Points in November of 2017 and a record low of 37.70 Index Points in May of 1983.
Housing Index in Canada is expected to be 103.20 Index Points by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Housing Index in Canada to stand at 104.30 in 12 months time. In the long-term, the Canada New Housing Price Index is projected to trend around 106.00 Index Points in 2020, according to our econometric models.