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New home prices weaken in Canada
4 D$ Q2 ^8 Z" @1 z2 y" `0 ], gCanwest News Service
4 c- |, P$ u9 q( W( ^Published: 7:48 am
& F& ^/ T0 H! v7 [% zOTTAWA - 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 y: c" z; M3 v9 f
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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.
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$ ? W# F$ A! X1 D$ i F d" j"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.6 h8 J# G+ h% x0 Z* ~6 [' K
6 a, B4 y# `. u/ v& K3 wIn 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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+ _, G& P. u0 a6 M( ~"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."5 _& B* N% k$ I7 E. 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.
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3 m0 O |+ D2 KIn Edmonton, the year-on-year rate slowed to 8.1 per cent - the ninth straight month of decelerated growth.
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) c: \6 P) @; R; H' O o/ XMeanwhile, 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.0 K) r4 Y% \9 t$ G; C3 I2 I) X
* _$ X5 P B. e% Q. h2 {1 LIn Newfoundland and Labrador "a strengthening economy, coupled with increased material and labour costs, has contributed to record increases," Statistics Canada said.3 L- P: D9 e) H( O& F6 F* ^ L
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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.' N8 x+ ]' k! G5 t
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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.7 m- J5 c7 H- D& u
* {9 ^: Z3 A1 L3 ]7 d+ r3 u3 t }"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.* m" ~7 r, U. \4 G* ]# _. W
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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."! O# x7 @" x5 o
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© Canwest News Service 2008 |
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