Canada new home prices edged down 0.1% in January of 2019, first decrease since February 2018, following five consecutive months of no change. The largest decline was observed in Saskatoon (-0.3%), followed by Toronto (-0.2%), Calgary (-0.2%), Vancouver (-0.1%) and Edmonton (-0.1%) on lower negotiated selling prices and unfavourable market conditions. In contrast, eight census metropolitan areas reported gains, of which Halifax and Trois-Rivières, both were up 0.3% as a result of higher construction costs. Year-on-year, home prices decreased 0.1%, the first annual drop in over nine years, after being flat for two months in a row. Housing Index in Canada averaged 66.96 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 103.31 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.