Canada new home prices were unchanged in September of 2018 for a second consecutive month, and against market expectations of a 0.1 percent rise. Prices were reported declining or flat in 20 of the 27 census metropolitan areas, due to mortgage rate increases, along with tighter mortgage regulations. The largest price increases in September were in London (+0.5 percent), mainly due to higher construction cost; Vancouver (+0.4 percent), as builders returned to list prices after some discounting in previous months; and Sherbrooke (+0.4 percent), mostly on higher prices for new phases of development. On the other hand, new house prices declined the most in St. John's and Hamilton (both down 0.4 percent), and Halifax and Saskatoon (both down 0.3 percent), due to unfavourable market conditions. Year-over-year, new home prices edged up 0.2 percent, the smallest annual increase since January of 2010. Housing Index in Canada averaged 66.64 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 103.00 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 103.31 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.