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New home prices weaken in Canada
8 s0 y+ o# k" V+ X# bCanwest News Service& S. ]4 w# q7 O B
Published: 7:48 am
1 ?, `) S- j4 j, H0 Q0 O& COTTAWA - 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.7 b& m' L/ \2 p0 P0 b9 G3 X
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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 C& v) I, l+ g; F
6 q. t: p9 L# }; X$ m. k& I"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 w3 b! m( J" K, D/ S; [
. r" e9 f }$ I( U" L; oIn 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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" H+ p# y2 L0 u5 z: k* _9 N1 B"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.": m F' c6 H* T) g9 k6 m
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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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4 ~5 ?2 ^- Z ~ S7 bIn 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.
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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.) [! Z9 | d' U# _
$ |; m$ M, W. ]2 J2 l5 }. GPrices in St. John's rose 16.3 per cent in April, up from the year-over-year increase of 12 per cent in March.! `4 B3 B- ?: x" N' e7 Q
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Nova 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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' m+ d( y2 s+ p4 T: u8 {"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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3 y4 q6 L0 R0 E! \- R8 o* N$ L& o9 j5 s"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."7 ]! a3 T4 [# K0 B6 L
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( V: u) n( ^; e% _© Canwest News Service 2008 |
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