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New home prices weaken in Canada
- f7 q3 O! e; ^) q7 Z! v- sCanwest News Service
! c- x- w- `) C0 d" J5 xPublished: 7:48 am
# O6 X9 o+ g) q5 B& g. ^9 P: u" D" Y; o7 \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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$ N$ p9 L% ~2 g2 a" ~% g( JApril'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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"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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6 k/ D. s/ f9 k# D' c! S1 EIn 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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& `5 g- A6 ^+ _7 H2 R: e$ ^( {"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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" ?0 A# H0 v9 O1 U. wIn Edmonton, the year-on-year rate slowed to 8.1 per cent - the ninth straight month of decelerated growth.
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/ i# j; G1 L0 X( I: W* LMeanwhile, 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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$ S. t/ E5 o# O, {+ YPrices 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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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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* b6 ~. {' k. R; P& t8 u# n7 tPrices in St. John's rose 16.3 per cent in April, up from the year-over-year increase of 12 per cent in March.
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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.$ P I. f' ^9 k# d$ i
+ t4 v8 r5 ]% b: |0 ]"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.8 `2 y) b/ a- i4 a+ [
% G$ z" Q7 J- |9 Y7 g, y$ r"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."
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" n$ x! @8 y$ L© Canwest News Service 2008 |
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