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New home prices weaken in Canada- y) n; M! D& a. L
Canwest News Service
3 _9 w6 Y4 S3 [( K3 s1 pPublished: 7:48 am
5 N& y+ a9 y1 x; b5 UOTTAWA - 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 P; `% M' G' {2 O H' `) \' o
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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.- o0 k* q4 e+ N2 t+ Q2 X/ }
7 F* n. f3 \$ a2 i"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. c1 H( F9 ^& @
# X( k! ^- N) A9 v. I$ X/ 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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% u7 l5 `: }2 [3 ["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."2 |2 G- n9 V4 h) m1 G! x m& e
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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.5 M/ f$ U |3 U$ M& y* H
. u) w- _: ^6 M+ _, g% u$ L: ]) v/ ?In Edmonton, the year-on-year rate slowed to 8.1 per cent - the ninth straight month of decelerated growth.
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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.& w& J9 g2 r* N7 f ~2 U2 U" `6 v
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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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In Newfoundland and Labrador "a strengthening economy, coupled with increased material and labour costs, has contributed to record increases," Statistics Canada said.1 \6 O- v$ t4 D& T3 d" ?; Y O
9 b0 V/ J$ q% g, M2 e- PPrices 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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7 n' J) K5 t8 w+ u/ F. ?4 x0 WNova 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.0 \; q! b2 ^( r# A
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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.: Y2 z; P9 Z! p5 l4 d2 m, o1 @
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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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9 Y1 X+ U: ]) a6 ~6 O9 N© Canwest News Service 2008 |
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