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New home prices weaken in Canada0 Q3 E7 P( D$ r
Canwest News Service' k# W c5 h1 s! T; N
Published: 7:48 am
: Y( l4 |1 R% 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.
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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.* G3 T: U1 \7 Z! l
8 q2 b, g4 q. u' T6 g# x+ J+ K"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.- T. {( P% L( B/ G3 |
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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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"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." [2 x: r3 \: H
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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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6 C s) j$ x5 ]! ^/ b5 MIn Edmonton, the year-on-year rate slowed to 8.1 per cent - the ninth straight month of decelerated growth. * v% J& k" W2 e# Z# m
0 ?2 R; V, P" I1 Y. V' BMeanwhile, 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.4 x6 j; t- }' [# 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.1 m8 `) }) }3 Y! t
5 h+ n; D; P) V7 s$ tIn Newfoundland and Labrador "a strengthening economy, coupled with increased material and labour costs, has contributed to record increases," Statistics Canada said.
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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., v2 k1 h$ |8 F# w3 ^8 D3 ~
& `* Y n4 ^, C1 R" i: K; B, ]/ \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.7 i' L7 b+ F) H& s }
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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.- e; A2 U* V3 P- X* Z) {
! B( ?, x- W8 W2 }, q"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."* z% `$ W2 b# L
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5 o9 ~6 |. v# ?+ Y2 @© Canwest News Service 2008 |
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