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New home prices weaken in Canada2 B u3 B. G& \" O
Canwest News Service
! m0 K# K" B, A; H7 d: y. R; L& HPublished: 7:48 am# g) w& m( ^; W9 ^% w
OTTAWA - Prices for new homes in Canada rose by 5.2 per cent in April from a year earlier, the slowest pace in more than two and a half years as a weakening Alberta market continued to pull down the national average, Statistics Canada said Wednesday.8 B2 q; N9 a* K0 \
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April's rate was down from a 6.1 per cent year-on-year increase in March, the federal agency said. On a monthly basis, prices were unchanged in April from March.
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6 `; Z2 D6 z: p' T" o"This was the third consecutive month in which the increase has decelerated, and the slowest rate of growth since September 2005, when year-over-year prices rose by 4.9 per cent," it said.
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) W0 P# _9 [& w/ XIn contrast to strong markets in Saskatchewan and parts of Atlantic Canada, home prices in oil-rich Alberta showed more signs of cooling. ; a! E; `9 P g; {1 t$ d
( M5 ~% @. w) W/ i- V6 R; _& e" E"Edmonton and Calgary continued to experience slow market conditions," Statistics Canada said. "Competition among builders has resulted in lower prices being offered to prospective homebuyers."
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! y/ @" `0 ]4 A8 R' O; F# G. YPrices in Calgary edged up 2.5 per cent in April from a year earlier, compared to a 5.3 per cent year-over-year increase in March.5 m' s4 P2 Q& r, W8 T
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In Edmonton, the year-on-year rate slowed to 8.1 per cent - the ninth straight month of decelerated growth.
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9 |0 S, ]7 A6 c6 O7 B MMeanwhile, the Saskatchewan housing market continued to heat up in April. Prices in Saskatoon led the country for the 12th straight month, jumping 43.7 per cent from a year earlier - but down slightly from a 46.2 per cent year-on-year gain in March.) B+ t% g' l% K* m
# m$ Q' }/ s8 a$ |Prices in Regina were up 34 per cent in April from the same time in 2007, compared to a 27.8 per year-on-year increase in March., H0 s' i; g3 [! M; y% A) A/ w
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In Newfoundland and Labrador "a strengthening economy, coupled with increased material and labour costs, has contributed to record increases," Statistics Canada said.4 g1 y( [: W t& Y) K) h8 p% i
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Prices in St. John's rose 16.3 per cent in April, up from the year-over-year increase of 12 per cent in March. R2 |1 f; X8 ]' V6 A
' n! l6 b; o9 X1 B+ q2 [Nova Scotia also saw strong gains, with prices in Halifax increasing 11.3 per cent from a year earlier, although that was down slightly from a record year-on-year gain 12.8 per cent in March.
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"The report adds to the growing body of evidence that indicates that the Canadian housing sector may be coming off the boil," said Millan Mulraine, economics strategist at TD Securities.
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"Similar behaviour has also been observed in the price of existing homes. However, it is important to note that the Canadian housing sector remains in reasonable shape and a U.S.-style correction in home prices remains highly unlikely."
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. O) j7 R# r4 i. g' z8 M5 }© Canwest News Service 2008 |
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