Canada new home prices were unchanged in October of 2018 for a third consecutive month, matching market expectations. Prices were reported declining or flat in 16 of the 27 census metropolitan areas, linked to tighter mortgage regulations as well as provincial interventions, mostly targeting the Toronto (-0.1%) and Vancouver (0.0%) housing markets. In contrast, prices continued to increase in the more affordable markets of Windsor (+0.9%) and Ottawa (+0.6%), with builders citing shortage of developed land, higher construction costs and favourable market conditions as the main contributing factors. Year-on-year, home prices rose 0.1 percent, after increasing 0.2 percent in the previous month. It is the smallest annual increase since January 2010. Housing Index in Canada averaged 66.72 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.