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New home prices weaken in Canada
( X/ i2 T3 q- ` ]" |7 p0 ?6 ?* _Canwest News Service
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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.0 y- o. n/ E* E4 a8 H1 G
- P3 M' E2 W; c9 C& n% g2 }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 k1 [6 g8 r) Y( q: i
0 l' o/ ?5 Z {: S5 n6 a5 }"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" p8 R6 k5 n4 D4 `/ J7 f. j
6 e9 b; S" O) Q. L8 T) IIn 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."2 G3 B+ O. z! u
. l3 X( ]6 o0 o0 O. d! K2 A: x8 m) sPrices 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.& B+ L. i+ `; ^; e3 j0 l3 l6 w. U7 c
5 P0 }9 Z' ?1 \' J' m' JIn Edmonton, the year-on-year rate slowed to 8.1 per cent - the ninth straight month of decelerated growth. V. F5 |, h$ E$ | ?
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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.
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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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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.2 ?7 }# \5 r4 g6 u: Z
5 n8 a3 {/ \1 w. F1 O) z$ rNova 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.* U- [5 E0 v- G, z4 D* I
- L5 c% |/ S7 Z) M"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.* @ i( R2 ?6 q( i9 n1 O# y3 |
6 e* k. z5 @' \" N$ |/ S6 H"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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© Canwest News Service 2008 |
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