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New home prices weaken in Canada
& ?/ q7 Z8 x. A9 q2 a. zCanwest News Service8 a" p i' }$ m* e8 u) z
Published: 7:48 am2 [; z; l/ V; B1 \( M) B
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.
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% A$ r+ ^: Z. U: ?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.' O6 \9 g M7 d. C8 d
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"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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In contrast to strong markets in Saskatchewan and parts of Atlantic Canada, home prices in oil-rich Alberta showed more signs of cooling. % d# O* ]( ^- {* S) T0 V! K
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"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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Prices 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.
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In Edmonton, the year-on-year rate slowed to 8.1 per cent - the ninth straight month of decelerated growth. 2 n" f$ I" V( I: q& F O
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Meanwhile, 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.! G8 u: a- A! M9 s
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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.% R: K2 n9 S, V, U6 g& i' T( `
9 X* ^3 _3 I( \4 lIn Newfoundland and Labrador "a strengthening economy, coupled with increased material and labour costs, has contributed to record increases," Statistics Canada said.' M$ v& @* p7 ?$ I) p# Y
; S- f' l* Y4 A9 xPrices in St. John's rose 16.3 per cent in April, up from the year-over-year increase of 12 per cent in March.
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8 p8 S7 U/ a' W+ `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./ p9 Z6 Z9 Y; u7 y
7 ~- V" z: h, R. [* B"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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! A) c6 s$ d+ u# u2 ^6 ~( l© Canwest News Service 2008 |
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