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New home prices weaken in Canada
9 `5 b* N( E9 ^8 h% h# TCanwest News Service
3 S- O* D& O* oPublished: 7:48 am
! o' ?* O8 B! X: ^: \, w* F& U, I$ e8 bOTTAWA - 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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1 c# Z" K2 G# O4 hApril'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.4 o4 N& H* ]( s* o8 S
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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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0 r1 q0 m& j# CIn contrast to strong markets in Saskatchewan and parts of Atlantic Canada, home prices in oil-rich Alberta showed more signs of cooling. ) ^6 q* ]6 v. x4 k
) \* m" |) [) n7 q"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."" z+ \1 r7 v5 O$ H, ~9 f
" x) {( G; k7 y) a3 R( S( \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.0 E. _; k9 u; K' V
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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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4 B. j7 s- G3 c5 n$ e/ N9 w* fMeanwhile, 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.4 Q; ~% j+ h2 X7 ^ z% @+ O( k9 ]
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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.
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: p; c1 G; z" l/ KIn Newfoundland and Labrador "a strengthening economy, coupled with increased material and labour costs, has contributed to record increases," Statistics Canada said.
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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.* r4 h: S& v/ b- x- m
: L) l, j) M* CNova 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 j7 A6 A7 V& k9 \# e
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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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/ |3 R0 F- a8 ^/ |/ h1 ?8 I/ m"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# X! _% _% A9 n© Canwest News Service 2008 |
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