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New home prices weaken in Canada
^. w0 g# p' u: o( PCanwest News Service, |8 p' N2 m9 c- r" C; r8 \- D
Published: 7:48 am6 T. o; ]7 d4 U: i
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.
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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.; Y9 w* K: Q" i* t8 f
& a( S p2 J' [: w( w# D: SIn contrast to strong markets in Saskatchewan and parts of Atlantic Canada, home prices in oil-rich Alberta showed more signs of cooling. 6 t% R8 `" K: X" M. H6 ]# @& n
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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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( E2 d- p! H8 E. [- Y# a- E5 @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.0 ]" p- u. c4 K" w" W8 I' R1 \; W
, U* E) i5 O2 v5 ~% l6 [4 R: T" XIn Edmonton, the year-on-year rate slowed to 8.1 per cent - the ninth straight month of decelerated growth. 2 g- d7 I' [2 i+ a6 o3 q' A/ A
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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.1 u5 H% n& L8 t' X6 [6 S
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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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/ f3 b9 { [: M: X L0 n5 b) B% fIn 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. }8 H" \6 o8 ^4 {; U6 z+ B
! F+ x% \0 U, y4 RNova 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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, {6 z* w% n# A1 N"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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"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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8 M" j# z2 W0 R. Z© Canwest News Service 2008 |
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