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New home prices weaken in Canada
( z7 x, q! p ~. ~, b VCanwest News Service
; W- R* f9 n. k. O" rPublished: 7:48 am, x# x9 w u* r6 F
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.
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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.
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! \7 r5 e8 _- Q0 n. L% Q5 {"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." A# O, y: `6 D$ ^ W
- U* _( y* g: F! `+ B3 U$ yIn contrast to strong markets in Saskatchewan and parts of Atlantic Canada, home prices in oil-rich Alberta showed more signs of cooling. ' Z( \% w6 a" k, s9 a, y
7 X# x$ u4 |5 {2 m) A6 j" ["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."4 s% V6 t9 `- k& e1 _
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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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8 H2 e* \4 S" ^2 L; Y) A* |In Edmonton, the year-on-year rate slowed to 8.1 per cent - the ninth straight month of decelerated growth. 2 s; @$ r0 r1 N' e. f Z5 Y9 L
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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.2 P& R K3 \* `2 O' {, O
9 [8 p3 B) s. y5 @$ N8 zPrices 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.% \4 W3 l7 M: z5 \
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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.' D4 S' ^# K2 e' [# e6 x
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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.) w: `$ l Z. D3 c* Z/ P, S7 S- ?
3 Q, P7 X) L1 s7 FNova 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.! v# M0 S+ Z0 X) `8 {9 T
0 t5 N- v, P* [* Q- y" \5 k+ x$ H"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."0 M/ _$ g" V) A: s \; D
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