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New home prices weaken in Canada! @; I) P+ L A7 v2 w9 m' Q& L
Canwest News Service
2 l2 W! v% l0 B2 a1 L; s! i4 jPublished: 7:48 am
( R* O4 @: V9 F+ S4 v) y; DOTTAWA - 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.- k! ?1 G1 K b1 S
3 n* I3 J0 s0 NApril'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." i. r+ ]0 M) Q( q V1 Y" `9 {
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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.0 x/ p( O6 V N/ c. ^
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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.
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# {' f( g# j, h: 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.", N; J5 {( n$ I r) E0 A8 R
9 p- Y/ Z# I4 g D0 R; 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.7 @, Z5 j; t" t c0 T- j9 l/ c1 Y
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In Edmonton, the year-on-year rate slowed to 8.1 per cent - the ninth straight month of decelerated growth. $ ?- t7 |) F& | Y$ Y; Q& H
8 r! o3 @, Q" _" B/ 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.
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4 h2 D$ x0 J4 `+ ]5 ^6 m# x; nPrices 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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8 N( |; S# r" zIn Newfoundland and Labrador "a strengthening economy, coupled with increased material and labour costs, has contributed to record increases," Statistics Canada said.9 A! Z4 ?( C( o1 n4 I* y4 p
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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.
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6 n. f3 U& H4 ANova 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.$ k; F @2 i# z2 g5 G q* `( h) L% }
9 j3 g! g M B# n" x5 b) W"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./ z, T( a& u( a! X! q, Q0 b
6 ?8 j9 C# j/ b* b; g. C. @"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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© Canwest News Service 2008 |
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