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New home prices weaken in Canada0 j. M" m4 a% Q, F
Canwest News Service& G" e: y9 [1 O& {3 v! [
Published: 7:48 am
* R& u3 \0 m0 I0 {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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+ W# }/ }' E& I$ b5 o; KApril'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. U& k2 z- [. F4 C+ d
. U; s" B! b' w! c"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.
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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. 7 q/ B5 g5 a* |1 O: x/ e
2 c! N4 w! k6 v: p"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."0 N n/ e4 e" j; z( u+ Z
/ @ Y! T9 R" Y% \# g qPrices 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.; R& |. h; r0 E* c: A
9 H+ ?- b+ w4 O" x# F& kIn 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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- \/ k$ D: c6 b0 T4 wPrices 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./ v' Q5 C# m0 K) e! {$ }5 [, U, I4 L7 j
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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.1 Y3 J2 P2 l' s% o8 A: z# b" ?
2 N3 h( w! a- h3 k( D: \8 vPrices in St. John's rose 16.3 per cent in April, up from the year-over-year increase of 12 per cent in March.* P) i: o) @- d' |2 M, g; j
# n, P5 w9 B7 B8 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.
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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.
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8 P6 P. v5 r& q$ B. ]6 B/ m: i"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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: }; G& c' M: u© Canwest News Service 2008 |
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