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New home prices weaken in Canada6 d) X7 F: R- B6 `7 T, X/ K' x
Canwest News Service
# T. h6 _8 P+ h# }. ePublished: 7:48 am8 D4 r$ R& b) d1 F1 e2 e% n6 }* [
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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' x: E( {0 u8 P& k% L, k' h# kApril'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.1 ]% v. J% m# a6 i9 S( {; P
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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.# X& i1 x' E( o' {' @5 G9 i
. t$ o- W6 r' i8 sIn contrast to strong markets in Saskatchewan and parts of Atlantic Canada, home prices in oil-rich Alberta showed more signs of cooling. & @" u0 F) S S8 Y9 ^
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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."( V H& W/ w5 v# _ u
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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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6 z/ b1 K$ X) EIn Edmonton, the year-on-year rate slowed to 8.1 per cent - the ninth straight month of decelerated growth.
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4 Q5 m9 l0 b: T+ 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., \) d. E3 t: `7 F! s
7 N$ V7 F) t$ c9 ]+ W! NPrices 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.
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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.* ]8 I: ~: _, B$ u8 r
( W3 x1 m* ?' r; e0 _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.
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! l$ T+ p+ [+ SNova 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.- }" v/ o4 z( w- k7 B+ Z P
# {7 ]( S8 C( l, K"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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4 ^- ~- P) m0 U. s8 C9 d"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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. K" C6 [. D( U" x: d$ u* y9 Y© Canwest News Service 2008 |
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