Statistics Canada reported on Wednesday the New Housing Price Index (NHPI) surged 1.2 percent m-o-m in September, following a 0.5 percent m-o-m advance in the previous month. This was the largest monthly jump in home prices in 14 years.

Economists had forecast the NHPI to increase 0.5 percent m-o-m in September.

According to the report, new home prices rose in 24 out of the 27 census metropolitan areas (CMAs) surveyed in September, with Victoria (+2.5 percent m-o-m) and Hamilton (+2.3 percent m-o-m) recording the largest monthly gains, as both CMAs 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.

On the contrary, Regina (-0.3 percent m-o-m) and Saskatoon (-0.2 percent m-o-m) were the only two CMAs with decreased new home prices in September.

In y-o-y terms, NHPI climbed 3.2 percent in September, following a 2.1 percent gain in the previous month. This was the largest y-o-y advance since January 2018.