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New home prices weaken in Canada- r5 j% k' }. V' w( k7 K' H
Canwest News Service3 u+ v* e, |/ X2 ?5 J# E
Published: 7:48 am
% e* E: h8 m! K& {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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* a- K a) g; {) _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.
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% L* W+ s. J# U5 T"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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% ^/ V( ~, D5 A% e9 NIn 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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( B% i( {2 m. o2 L; X b"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."+ G+ A1 }8 f# c
# X8 p% C4 [1 l" cPrices 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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" B* c u& C9 G2 U/ g( w; P4 n/ r& fIn Edmonton, the year-on-year rate slowed to 8.1 per cent - the ninth straight month of decelerated growth. ' D3 T. d" C4 y$ D2 m
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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. U' O; B) s! D& j M' q4 L4 E3 V
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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.6 A, `, w$ r7 C( a$ T) u } Q
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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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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. z' c5 z" Z: X4 d' [
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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.4 W& I. S; j6 b, _9 H$ H* C
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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.8 p# q! L& h& T; Q i) `
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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."0 F8 c9 j5 d. M) V, w& ^
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© Canwest News Service 2008 |
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