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New home prices weaken in Canada
1 i+ Y9 x- ~: k- K* {2 g, `6 W4 t8 TCanwest News Service
+ T5 @6 U. i: V4 b% QPublished: 7:48 am
$ h& E! H8 m1 H$ WOTTAWA - 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.( {% R. a7 P& ~7 H, j# e
) T0 X3 j, V; c. lApril'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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In contrast to strong markets in Saskatchewan and parts of Atlantic Canada, home prices in oil-rich Alberta showed more signs of cooling. $ \9 T, Y% [2 b, O
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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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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. 6 G, _; y, V& [0 P6 F
: K" R9 j, [* `2 i. k' V |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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3 A+ W( }' G6 \+ Y# u$ l$ \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.3 _' @" L6 [3 \ ~( z2 Q* `
# I6 g' w! p$ n+ p 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." U w+ m, ?+ u, b, F4 Y" U
9 p4 F. c* a0 cNova 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. A; N" K, K! @1 B' ]
1 U. u/ F$ r; e, l"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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