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New home prices weaken in Canada
" J9 ?: N2 M$ eCanwest News Service7 O. ^1 o3 _6 h+ ^. @9 G% J
Published: 7:48 am7 j& ^0 w1 m d5 j3 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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( m$ x* p* j' V- F$ Z* {( y: K4 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.8 b/ D: w5 c) ?2 Q9 w- g c$ L0 e" `
; A5 L- S9 k+ k7 T"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.; g4 w% ~/ i" K% P% @. }, Q
9 B4 p1 r7 E) q$ o/ C3 b( t# fIn 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."$ x% F: V1 X( g
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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.) h" C# V3 }8 W' [# R: U
0 G2 A* Q3 D+ F9 b8 {" h; H+ JIn Edmonton, the year-on-year rate slowed to 8.1 per cent - the ninth straight month of decelerated growth.
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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.1 g/ v" I& x- b8 \2 R. ]
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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." g4 R' P8 z: v% s' e
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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.4 F! k# f: m5 N9 k7 W j( Y
* k8 ~7 {( i. YPrices in St. John's rose 16.3 per cent in April, up from the year-over-year increase of 12 per cent in March.; [8 U* S" P! z0 c9 I0 K, _8 }
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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.! s/ [: R& j1 K, O5 C
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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."7 m5 V ]4 h% b6 N7 Q
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8 ?* D! }$ e2 Y3 a) T© Canwest News Service 2008 |
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