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New home prices weaken in Canada
0 S1 n3 _7 X$ j" M* E! @- qCanwest News Service
( C# a+ L5 s1 z5 v# l2 ?7 }Published: 7:48 am
6 t" f( d: N3 b: o+ i/ BOTTAWA - 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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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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! d( h) B1 ~$ `"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.& n# {+ C4 X4 D3 J8 Z
/ A: |% ]3 T+ B. f) C+ HIn contrast to strong markets in Saskatchewan and parts of Atlantic Canada, home prices in oil-rich Alberta showed more signs of cooling. ! u5 Q0 s( _8 ], p9 u
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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.0 D0 q9 Z+ \& Q& {
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In Edmonton, the year-on-year rate slowed to 8.1 per cent - the ninth straight month of decelerated growth. ! @8 _( N7 }! M& a2 l& p% r% P
7 u" n: k9 h0 \3 P' jMeanwhile, 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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) r$ k9 [8 F+ U) _/ zPrices 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.* G; Y" B( E3 l$ W% x
$ [2 }+ b6 V9 g5 fIn 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./ B; b8 [/ @6 _, G. U
* F, O2 O7 U7 ? J; 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.
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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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8 K( i# C( k4 }"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 J1 `7 x) b" \/ V) C0 s
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© Canwest News Service 2008 |
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