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New home prices weaken in Canada4 Y2 r0 j5 Y7 f2 _# T% f9 \
Canwest News Service; H( Q1 E6 }. v+ Y) E
Published: 7:48 am
3 ?5 n2 l5 V* ^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.6 J8 Y) U. m9 Q6 G: | ?
7 s5 c4 E# Q' U! ^9 y! t k9 ~& U2 mApril'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.) l5 N9 u: I( G4 \9 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.! L/ }* S- T. c+ @
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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. 5 R6 A4 }: ?0 W5 b' a! b
, }/ w w3 H* n, F6 X& O( a& y"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."/ Y! J' m4 J0 k2 w% R
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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.6 v3 s+ U$ m" X2 `2 H& S, i2 B
) g: N; ?$ x9 m7 yIn Edmonton, the year-on-year rate slowed to 8.1 per cent - the ninth straight month of decelerated growth.
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1 O3 t0 ^6 W4 Y& m" D# Y- D0 @' {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.0 f/ {1 D2 W8 ^) y3 P+ V
2 D& ^- ?8 [: J( F9 b4 UPrices 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./ Y5 t0 \ F8 N" i
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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.) V3 G& \' ~: u- v' J% b$ |/ x' H
, T, |9 h/ ]* R- ^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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% H# e; i+ W; QNova 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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3 p) N" l* i& h+ N0 ?& S"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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6 x9 J8 z$ u) |( D: G"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."# U7 K; e: U1 K4 P" l' v( E, O* i
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© Canwest News Service 2008 |
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