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New home prices weaken in Canada
* |! l' V3 R/ |5 |* |" c$ s6 j3 L$ fCanwest News Service
G% X! Y3 a1 ]Published: 7:48 am
6 i- O7 N# g0 h: bOTTAWA - 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.: U; x. `$ P8 `* v
8 j T: @$ _1 {6 ~! q% `: kApril'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.5 H# Q% e6 p/ H3 Y F+ y8 s
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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.' l% |! U; X" R
7 x+ _8 y( S5 F$ q2 y5 w. J3 MIn 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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3 h$ Z @ Z' b3 J8 g"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."9 \( \. [& g* F. A9 x' c4 W% i
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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., b+ P0 z- K1 |1 M" T8 e$ t
4 k5 }( @/ h* O2 ?In Edmonton, the year-on-year rate slowed to 8.1 per cent - the ninth straight month of decelerated growth. : e2 p Y* c% S/ R. p8 n' p
+ ]; E6 V9 e! v: SMeanwhile, 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.* R' V5 s1 a. U! ], D0 \8 E
& o, G" F6 ?* k- C0 JPrices 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.: y3 ?- q& g( ^! q- f5 m+ ~9 q
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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./ ]0 \6 q, p3 l! V! Y6 I
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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.$ V: H% ~4 p; {. [/ G" J
2 m; O, w3 N' z" t2 GNova 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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& w5 B2 f( I% B* d6 h: \7 F' U"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 i+ x& K, H7 c3 T6 r4 `
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© Canwest News Service 2008 |
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