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New home prices weaken in Canada9 Q6 P3 d, F6 H/ ]
Canwest News Service
3 |* m3 u. X& T( ?; @4 y+ q% @, `Published: 7:48 am2 W6 {; V, S' E! M- f
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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' O; }8 O' y) B- 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.
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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.& e: x) M' {- G6 z, D8 x
6 ~1 @2 i' m) fIn 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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5 o6 e: s1 U g$ Z' T0 h# g( X2 I"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."; _. h5 ?% y+ \$ A' X
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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.3 d* f- c8 [4 {. d* x& Y1 Q; J
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In Edmonton, the year-on-year rate slowed to 8.1 per cent - the ninth straight month of decelerated growth. ) n( y- P* @* E. z: F% a
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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. Q7 P+ d' M( ]: C, q* t! |
" r/ S7 O$ ]- R% a1 R- \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.+ p% ]& x7 G8 w; U) @" x, ~
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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.
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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.5 ~/ [4 }0 m) p8 A9 s: ]
7 @; ]! _8 |4 ~" WNova 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.0 K2 D w1 ]' p: ^
3 O _& u- a- Y3 _"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.& n" p8 t8 A$ |4 a# i" R% _
, x. Q8 J& y. O"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."; F3 O1 {) r" Z% _( C9 P, f0 U
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© Canwest News Service 2008 |
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