Canada new home prices dropped 0.1% in May of 2019, following three consecutive months of no change and against market expectations of a 0.1 percent rise. The largest declines of new home prices were in Saskatoon (-0.5%) and Victoria (-0.4%), amid deteriorating market conditions. Additionally, new home prices were also down in Edmonton, Kelowna, Toronto and Vancouver (each down 0.3%). In contrast, Charlottetown (+1.0%) had the largest price increase, with the rise attributed to higher construction costs. Year-on-year, new home prices were flat in May, after a 0.1 percent gain in the previous month. Housing Index in Canada averaged 67.27 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.