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New home prices weaken in Canada
; W# ?$ z2 _' \6 [/ J( l% NCanwest News Service9 H- W( h! T6 Q, @) M" z
Published: 7:48 am6 W4 [' [6 s; B5 ]/ E. _
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./ ]$ |0 d7 n! O6 t! y8 U) Z
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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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, `2 v& O& h! n, e"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.4 v3 ^) k% M# ~% O3 g+ O/ h9 c
, _) S. _0 e/ t* |; s* J1 j$ U0 YIn contrast to strong markets in Saskatchewan and parts of Atlantic Canada, home prices in oil-rich Alberta showed more signs of cooling. : r, w6 Z1 @* [" q
2 q% R) z/ _, {( Z5 m; j' Z"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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" f6 k$ s3 _! M- {. J& FPrices 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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/ k& T1 _. O ^( N; KIn Edmonton, the year-on-year rate slowed to 8.1 per cent - the ninth straight month of decelerated growth. ; t, i9 n, ~* s5 K* y
' H( t- b. h; s$ dMeanwhile, 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.
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- m) @/ y6 c" [In Newfoundland and Labrador "a strengthening economy, coupled with increased material and labour costs, has contributed to record increases," Statistics Canada said.1 e: v: m, o3 n& s. E$ G) V
1 ~9 z4 k9 }! G9 _- K7 H5 r% wPrices in St. John's rose 16.3 per cent in April, up from the year-over-year increase of 12 per cent in March.& ]. D. {5 o5 P7 j" A6 J
- w) Z5 `; N2 h" c: 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."7 B n1 Y v' Z I/ v1 K7 ]/ { P
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9 g) x6 X5 e* U3 v© Canwest News Service 2008 |
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