Canada new home prices were unchanged in November of 2018 for a fourth consecutive month, matching market expectations. Prices were reported flat or decreasing in 18 of the 27 census metropolitan areas, with the largest declines being registered in Regina (-0.6%) and St. John's (-0.4%), linked to unfavourable market conditions. New home prices were down in the three CMAs surveyed in British Columbia. Lower selling prices were the primary reason for the 0.3% decrease in Vancouver, while builders in Victoria and Kelowna (both down 0.1%) tied the dip in prices to promotional offers to stimulate sales. In contrast, the largest price increases were in Ottawa (+0.6%) and Montréal (+0.4%), owing to construction costs. Year-on-year, home prices were flat, after increasing 0.1 percent in the previous month. Housing Index in Canada averaged 66.80 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.