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New home prices weaken in Canada5 A7 r: z4 j; d" S- M5 ]
Canwest News Service
+ `. D6 R9 Y1 L; N& _% g6 U. c3 L$ RPublished: 7:48 am, a0 J+ U- m$ C8 d/ C8 P
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.( c4 c) e5 B1 {2 V( E0 O. ^
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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.6 O* H" d5 B& A, V5 N6 T9 m
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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.7 m7 K- k, L% ^7 \8 z6 Y* g% n h! j
! K- ]$ g( O8 |; t/ M1 Z9 LIn contrast to strong markets in Saskatchewan and parts of Atlantic Canada, home prices in oil-rich Alberta showed more signs of cooling. . T/ ?5 @( P5 m
% x( F7 q0 ?: S"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."' T' Z( T4 N2 l0 o
* N `& t/ O. i2 G+ P6 N9 ~$ T+ l, ]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 r* p3 f8 ?) t) @- l! Q
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In Edmonton, the year-on-year rate slowed to 8.1 per cent - the ninth straight month of decelerated growth. ' A' l" ^- p* \% f
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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.5 `! x( i2 d% \9 h
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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.2 C& @1 \- w* @: Q% ~9 D/ I
# G, j z) Q. H, }3 [" G: C# \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.
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F+ e' k+ j0 E6 t+ C) Z& 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.
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4 e" e! ^6 v$ A"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.0 w- [0 K9 F- a9 L; ^
% J" N7 g* l+ @4 `' `* 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."# p! f# Y+ }/ W9 }, c8 E
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- |4 h* i. Z3 i/ F% Y$ H9 `4 A% d© Canwest News Service 2008 |
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