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New home prices weaken in Canada
9 v! O" O. ^2 k' yCanwest News Service) }2 U8 ` K5 D6 O
Published: 7:48 am1 D5 L" H) W3 y: J
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.$ f" y( \9 p: {
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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.3 A8 `$ X1 d1 v. l
- j, \/ X6 z% |, t9 ?0 U"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.5 c3 Q" B, O/ \. J8 C
' \5 V \+ T- W9 ]& p/ c! JIn contrast to strong markets in Saskatchewan and parts of Atlantic Canada, home prices in oil-rich Alberta showed more signs of cooling. . F( z; f, p/ @& s* r# Y
# Q3 b+ G, n5 u3 j3 R"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.". `; D( m I: Q& x# x0 l; B& K! {! O5 J: V
, U6 }( E" P% s. BPrices 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.. Z& q( e4 k7 L. V8 V( T/ A" T
( `7 h# ^7 M0 nIn 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./ \, V7 l1 y. B
) y: Y) M: j" g, j2 e. u1 `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.
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5 n/ F5 o( n [3 X! j2 y2 @6 UPrices in St. John's rose 16.3 per cent in April, up from the year-over-year increase of 12 per cent in March.* e( B7 P3 h; a
$ \- A D+ `( a+ jNova 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.2 @/ m# s# Q. A* P0 C2 S- s
/ i: b3 Y' q& A"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."9 S& d( b0 J+ d
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) B2 h3 V: A0 ?. {6 {3 T. D© Canwest News Service 2008 |
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