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New home prices weaken in Canada
' ^' Y3 s: g5 j& y o# }" _Canwest News Service$ { G# r; u0 \# v" h( s
Published: 7:48 am
+ t4 e- l$ k; n5 ^9 u4 a$ d* H& \4 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.1 m: m5 \2 M, S
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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./ S, h$ r5 n: N
6 n# B! p6 A1 _"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.: [9 l- b* A% s) j6 ~* k
! X1 ~6 E& p2 }3 s! v% a0 IIn 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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, \. c3 ?/ [# O' A( X3 N# d"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."
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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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* E: e" V6 q/ I$ F- |% \In Edmonton, the year-on-year rate slowed to 8.1 per cent - the ninth straight month of decelerated growth.
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+ i+ l! X' v$ e8 x- q8 }* _% E3 FMeanwhile, 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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1 G9 ^9 `5 v% @- d1 s: I! C5 b9 ~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.! \9 R* f t# c% B. `
# K9 s' B0 @3 s2 MIn Newfoundland and Labrador "a strengthening economy, coupled with increased material and labour costs, has contributed to record increases," Statistics Canada said.& K R, Q) D7 \
7 l+ }3 z" L: Z" x; z8 \% K; ^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.* H; C9 ^. j, w% }( s {6 F$ o& m
$ F! `' f) z; C8 e$ L+ Z* R( L( zNova 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.8 o+ J9 L; l5 e D& v) R8 C* D
" u5 Q; x0 m( }3 @/ |2 @6 ["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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`0 g. t; V7 _( h% {3 ]5 o% V"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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# i& @1 s" K' t" p© Canwest News Service 2008 |
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