Statistics Canada reported on Monday the New Housing Price Index (NHPI) rose 0.5 percent m-o-m in August, following a 0.4 percent m-o-m advance in the previous month. This was the largest monthly gain since May 2017.

Economists had forecast the NHPI to increase 0.3 percent m-o-m in August.

According to the report, new home prices rose in 18 out of the 27 census metropolitan areas (CMAs) surveyed in August, with Oshawa (+1.8 percent m-o-m), Québec (+1.7 percent m-o-m) and Halifax (+1.6 percent m-o-m) recording the largest gains, supported by low inventory of homes available for sale, coupled with increased demand. On the contrary, new house prices dropped only in Calgary (-0.1 percent m-o-m), due to less favourable market conditions.

In y-o-y terms, NHPI rose 2.1 percent in August, following a 1.7 percent gain in the previous month. This was the largest y-o-y advance since March 2018.