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New home prices weaken in Canada' b& f" t5 ~8 ~2 Y3 @$ D
Canwest News Service- M, u5 O& d D+ j% k
Published: 7:48 am5 [2 T/ y* S. b0 j! i
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.' h+ o" H* i% o6 O3 [! b% I% m- D
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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.: `( W' X" t/ _% i, T8 e
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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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; _1 g4 e9 Z( b h' U" nIn contrast to strong markets in Saskatchewan and parts of Atlantic Canada, home prices in oil-rich Alberta showed more signs of cooling. ; {% w, E9 \3 q" w8 Y7 c# D, V
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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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2 |. }. j4 k9 q; H$ Q# CPrices 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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! \* ]2 ?6 e! F$ p" ?5 SIn Edmonton, the year-on-year rate slowed to 8.1 per cent - the ninth straight month of decelerated growth. 8 ^% T- {5 R: p- u$ A) B$ ^
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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.
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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 U! B! a; m: o# \* h6 e+ p" T
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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.. h, u0 K4 B b8 `1 p% n5 i4 m- H
* ~5 ? X- c. B( L( X# ~. ENova 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.+ z1 |0 d V- @
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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.3 C& u+ I, d' }
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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."2 x* y. L/ e+ y" B" |
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© Canwest News Service 2008 |
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