Canada new home prices were unchanged in December of 2018 for a fifth consecutive month, matching market expectations. Prices were reported flat or decreasing in 17 of the 27 census metropolitan areas, with the largest declines being observed in Regina (-0.4%), Toronto and Vancouver (-0.1% each). Lower negotiated selling prices and promotions to boost sales as well as unfavorable market conditions were pointed as main reasons to the decrease. In contrast, the largest price increases were reported in Ottawa and Sherbrooke (0.4% both), linked to market conditions and higher construction costs, respectively. Year-on-year, home prices were flat for a second straight month. Prices at the national level were largely unchanged throughout 2018. Housing Index in Canada averaged 66.88 Index Points from 1981 until 2018, 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 103.31 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 104.00 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.