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New home prices weaken in Canada
3 O# A( `, @+ F8 t3 k n% n/ cCanwest News Service
3 Y n) e% R: Y% R8 CPublished: 7:48 am1 j4 t: O( b1 x& o. ^
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.3 a- o0 R' G- V3 X7 @ O1 U
2 z; z/ Q: i$ S( S& w: d* A& u9 e1 qApril'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 K1 p" @) q( `, C
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"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.0 ]5 n/ k9 r& f" l% f- U
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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.
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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."
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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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In Edmonton, the year-on-year rate slowed to 8.1 per cent - the ninth straight month of decelerated growth. 4 ~) E; v& [; \# i* z9 b4 y
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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. f/ T2 f" O' V4 G. D) B' R* P
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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.+ n V5 d4 A- V# h# `# V* @
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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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+ {+ S; H+ a- _8 E) M+ O8 H4 `3 p8 sPrices in St. John's rose 16.3 per cent in April, up from the year-over-year increase of 12 per cent in March.: f5 \8 l4 ^1 U" l" U. u! r9 g
& \; y5 i( r" h" x! f6 E; z% y& LNova 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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"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."9 ~7 ?/ G2 T) w% w% D3 j# n. z
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! k- g9 n3 ]( _8 J, c. o$ G$ u0 t© Canwest News Service 2008 |
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