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New home prices weaken in Canada
4 i) z7 s o3 p3 e* ~" j5 d$ lCanwest News Service2 G- [* E" G) }; k1 R" `, d+ Q" S
Published: 7:48 am/ \% S& I8 @; m
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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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.4 _* C4 ?6 B7 K7 {0 o9 L% `
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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.
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5 Z2 F( t m" }: Q' o8 X. b/ @In contrast to strong markets in Saskatchewan and parts of Atlantic Canada, home prices in oil-rich Alberta showed more signs of cooling. - F+ F% D; y3 ~6 ~0 D- `% v
! t/ ^8 T% G: \ L& {"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."3 i7 J0 W$ |2 E1 e8 N
: Y# H" U7 N c! g) G: X! xPrices 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." u1 E. E8 g8 f( O* \ u: a
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In 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.7 F6 f2 T/ ~; {* `3 H+ n
( Q' ?+ S! A) L7 c+ N5 |8 SPrices 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.& h9 V/ e; z T6 E
! o/ b1 y V% w& y* V* AIn 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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. |+ @; {4 e- N6 c4 X" e. B5 nPrices 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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4 k9 @6 c3 Y1 T1 N l' M7 HNova 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.0 y( i, E8 D; T$ U1 h1 y
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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., h% k; K* D! [+ K' I8 r
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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 d% J- W4 X" O+ w$ C' ~- ~© Canwest News Service 2008 |
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