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New home prices weaken in Canada
. k8 ^+ `- r$ s1 {/ O6 pCanwest News Service
4 j! P( M" c3 X# k2 m$ e CPublished: 7:48 am
. ?0 ^3 d ^ _& x. @( iOTTAWA - 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.1 G0 Y2 {( d7 b2 @( m, A. X
* x: B4 t9 e; }; n3 u! IApril'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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- ^( X" w$ m& |* o! `"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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3 y) C8 i7 S. D; D# I% c* l& ^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."+ m0 {/ v" T/ Z& c; x
! k- i" L( L! H0 N/ }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.& i z+ W. d5 k& N
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In Edmonton, the year-on-year rate slowed to 8.1 per cent - the ninth straight month of decelerated growth. # u% r* L' A! B' ] b- q
1 c) D# ?* O# B1 s; k1 V8 M$ [5 m/ {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.2 @2 e& y+ r) v, w4 d
% P6 R5 V: K7 h. e) ~& d$ BPrices 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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In Newfoundland and Labrador "a strengthening economy, coupled with increased material and labour costs, has contributed to record increases," Statistics Canada said.1 E" k4 u$ Z# B. h
( Z" n6 c" y9 N; `/ w7 [8 m5 cPrices in St. John's rose 16.3 per cent in April, up from the year-over-year increase of 12 per cent in March.# i: o+ M; S+ a2 z$ K* v
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Nova 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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"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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# L! q1 d( \6 P' s"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."- x6 y$ X' |2 t; x1 m9 R7 h$ P
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" D+ w' R) ]% [, z) _, H© Canwest News Service 2008 |
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