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New home prices weaken in Canada
: ~4 p- x9 `- ~5 b6 sCanwest News Service
* y0 ?" A% \$ Z! W; |; O" Q( rPublished: 7:48 am
1 P: I! V! I* B0 ~& k8 a5 kOTTAWA - 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.3 N% N! q; d8 S" |5 ~ k2 Q' Q
) a6 _% v- p4 bApril'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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"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. @* _8 U8 }+ H- x' g$ `, J
# F2 k9 ~ ~# P6 B1 W: V( h- G5 VIn contrast to strong markets in Saskatchewan and parts of Atlantic Canada, home prices in oil-rich Alberta showed more signs of cooling. ( n5 L7 c9 q2 V7 y& t& \
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"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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3 o2 W3 \) W( o% APrices 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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In Edmonton, the year-on-year rate slowed to 8.1 per cent - the ninth straight month of decelerated growth. , E s$ J2 a2 J2 R
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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./ c( K4 U& Q* u9 c; \' O- r
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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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2 y1 c0 g, K. g! a2 HIn Newfoundland and Labrador "a strengthening economy, coupled with increased material and labour costs, has contributed to record increases," Statistics Canada said.8 b" Z0 a9 p7 i) W( e
3 z! ?! N5 ?# u) C, WPrices 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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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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$ e* X! T- G# Q/ \"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.2 t: Y- f, W- T; @
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"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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6 S0 [+ K. p" C; y3 z4 C© Canwest News Service 2008 |
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