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New home prices weaken in Canada
* ? T" G9 ^5 }; p9 Y. g" g' [! nCanwest News Service
+ y( u# N' U* P% _, APublished: 7:48 am( N2 A: E& w2 L( d
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.. K5 a4 g1 a) U1 f7 U
1 E% }0 H3 ]! b8 S8 n' DApril'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.1 Z, q, P% H2 T7 }8 q% ^" ^
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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.' ~9 N( Z. e/ B' K( I6 r9 |9 ~
! b6 m1 s& |# w) t" s1 tIn 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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1 V9 z6 W# X" ]4 e" O; k9 H/ E- x"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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& a) S/ G/ o2 [; L7 YPrices 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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; ^1 {5 L* q0 q, Q9 A D3 m& J6 c vIn 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.
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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.( H( N+ S# k B6 {2 V1 A& I; C
2 K" R) D" x, ]7 k9 j4 OPrices in St. John's rose 16.3 per cent in April, up from the year-over-year increase of 12 per cent in March./ O8 ]3 Z% z H- M. y
( }) F, r$ h% H! i' M: z( f" 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.
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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.; {9 k! J; V+ ^8 M! P) k U
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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."& Z! G8 o7 d9 T# s9 k+ t& _( l
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© Canwest News Service 2008 |
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