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New home prices weaken in Canada4 k+ U4 q6 }" s
Canwest News Service
L+ U* b4 r+ E; h6 x1 XPublished: 7:48 am1 _# Y+ P7 n( P9 k' h) @$ 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.3 s' l* l+ J5 F6 K$ O" n8 W
* m6 _' Q2 s- R$ W7 L# 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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& l. l9 b% o: P, W6 q1 rIn contrast to strong markets in Saskatchewan and parts of Atlantic Canada, home prices in oil-rich Alberta showed more signs of cooling. 0 G0 C* r _' ^9 [$ f1 G8 Q6 F
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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.": H. ?" B- Y" R( K
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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. ( t9 n1 O4 j! z$ |/ N/ [. U
! }: M0 \ j& w1 s O' k% @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.% e! D0 g! y8 s7 P
- l& J7 O7 `& b# K6 GPrices 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.- h" M6 W6 ?3 h4 ~2 O# ?7 u
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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.
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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.8 W/ c9 ^5 I4 e" u( e/ O6 T+ |+ P
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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."
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4 [% D7 w0 c( n- f# B! m5 S© Canwest News Service 2008 |
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