Prices of new homes in Canada rose by 1.2 percent from the previous month in September 2020, following a 0.5 percent increase in August and easily beating market expectations of 0.5 percent. That was the largest jump in home prices in 14 years, amid higher construction costs, mainly driven by the impact of the pandemic on the demand and supply of labor and materials. The shift in buyer preference for larger homes also contributed to the rise in new housing prices. Victoria (2.5 percent) and Hamilton (2.3 percent) reported the largest monthly increases, as both metropolitan areas offer affordable and large properties relative to larger city centers and are becoming more attractive choices for potential homebuyers who are able to work from home. Other larger increases this month were in Ottawa (2.2 percent) and Charlottetown (2.0 percent). Year-on-year, new house prices increased by 3.2 percent, the biggest rise since January 2018.
Housing Index in Canada averaged 68.50 points from 1981 until 2020, reaching an all time high of 106.50 points in September of 2020 and a record low of 37.70 points in May of 1983. This page provides - Canada New Housing Price Index - actual values, historical data, forecast, chart, statistics, economic calendar and news. Canada New Housing Price Index - data, historical chart, forecasts and calendar of releases - was last updated on October of 2020. source: Statistics Canada
Housing Index in Canada is expected to be 105.30 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 104.60 in 12 months time. In the long-term, the Canada New Housing Price Index is projected to trend around 104.30 points in 2021 and 103.80 points in 2022, according to our econometric models.