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New home prices weaken in Canada9 v N! T! h+ V; j
Canwest News Service
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5 \8 z- B/ W1 J2 S8 z2 zOTTAWA - 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. d0 y1 L, z: I3 U0 Y" m" z
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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.# x I+ ]0 v- }& ]3 n5 t9 k8 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.
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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.# [) a M8 ?. v# X- _/ t
' T3 r- p& O4 N$ b3 [7 jIn Edmonton, the year-on-year rate slowed to 8.1 per cent - the ninth straight month of decelerated growth. 4 Y4 L0 ~1 d) M
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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.! A+ c4 ^! K, w* m; \% O/ w' K
" W5 |3 ~1 G3 _( c2 E, f( ePrices 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.; J x: N3 V$ R2 P' N& y! e
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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.2 W& `1 m3 w9 u# I% [. l
" V O* {1 M! n% g: u. UPrices 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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% j9 @! |8 d9 ~6 F# l7 Q4 A+ U0 `+ T' jNova 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.6 ~8 Q' Y; s8 C) T; j
! N/ n! E- s9 u, g+ N& D8 C"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.1 ]4 F: F4 Z0 ?3 v$ z; k. v
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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."7 q' ^0 D; l; w
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2 F$ L8 `1 z! i© Canwest News Service 2008 |
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