Canada's new home prices dropped 0.1 percent for the second consecutive month in June 2019, while markets had forecast prices to remain unchanged. Calgary reported the largest price decrease (-1 percent), with builders tying the decrease to deteriorating market conditions. Meanwhile, the prices of new homes were up in Gatineau (1 percent) and Ottawa (0.6 percent), with the rise primarily attributable to higher construction costs amid weather-related disasters in a context of a skilled labour shortage. Also, new home prices in Hamilton were up 0.7 percent, the largest monthly increase since July 2017 on the back of favourable market conditions and more affordable housing prices in Hamilton relative to Toronto. Housing Index in Canada averaged 67.35 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.