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New home prices weaken in Canada
" w& j% A% J4 f3 R% X& h1 `, A: Y& JCanwest News Service" Q: q% Q# H* j1 ^) k
Published: 7:48 am
9 s8 ]. L. [) c( g7 iOTTAWA - 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.& b" F4 @/ q/ f/ m, N! y9 _
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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./ `: q$ z1 ^ y! b- t4 K" ?/ `! P
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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. : t- i# p" q$ N0 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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0 v; X4 ~+ L7 J3 x6 N! W' { f7 R8 ePrices 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.# Q( Q* G9 D5 S7 r
" L( a( u |! D( YIn Edmonton, the year-on-year rate slowed to 8.1 per cent - the ninth straight month of decelerated growth.
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5 [' n% `$ N! R! @& v8 lMeanwhile, 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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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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In 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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; M0 x; \: ~! k4 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.' t" J& w1 w! Y& y9 C( ^- `
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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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" W& w2 t( X& b; i; b2 D"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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; i) I6 e5 u) [: v o! r"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."# s6 E) @, v& a/ a& u3 ~& L
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) P( j' w. t! O, W1 u+ i© Canwest News Service 2008 |
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