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New home prices weaken in Canada
5 {3 r% q% ~! d6 p6 [# aCanwest News Service3 L- ]: R1 M& L8 C' |
Published: 7:48 am# b' z/ V7 y, E0 T6 d8 D% J$ }0 d3 \+ 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.
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8 n0 [3 S* u2 H3 s3 ~! r0 uApril'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.5 r6 d! H4 t& p9 H
+ `6 r5 T. \: A2 Q"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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In contrast to strong markets in Saskatchewan and parts of Atlantic Canada, home prices in oil-rich Alberta showed more signs of cooling. ) k/ l1 a% e( W6 i& _3 q; ?
- F9 {7 Z; m) P3 r) X/ A# `$ l"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."0 _" t) y7 s. \- _+ e
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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 k6 I0 p( L. f7 O
$ C, x. |4 P; [* S5 SIn Edmonton, the year-on-year rate slowed to 8.1 per cent - the ninth straight month of decelerated growth. " C; d. ?* j c" P2 c* f0 p. i+ N
0 G6 o O! ]0 f, b8 YMeanwhile, 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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4 y% o* p7 m6 P* TIn Newfoundland and Labrador "a strengthening economy, coupled with increased material and labour costs, has contributed to record increases," Statistics Canada said.; U( }$ \6 _5 i$ z! L& m
' E6 j4 f0 k& I+ w9 r$ F7 q# 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.$ v; j' r. D* z6 k
, |+ M: q$ n1 _& ]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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; H) t0 d) C8 M. v"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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"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."$ ^3 ]2 O! I \% A, Z9 Z$ _; G. v6 U
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© Canwest News Service 2008 |
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