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New home prices weaken in Canada
9 ]3 k5 k: K/ k3 {Canwest News Service5 \- h6 v; S7 y S4 {6 ]
Published: 7:48 am
2 p! Z0 a; X; X* g; E7 n0 F4 y7 aOTTAWA - 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.$ r8 Y" J1 D& L% |- J
4 R0 N2 w2 f6 o& m0 zApril'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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4 O# n1 n& W- ], a5 Y"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.$ {# r. M9 p/ \7 n+ R' \
& m! l: W: e v* z4 pIn contrast to strong markets in Saskatchewan and parts of Atlantic Canada, home prices in oil-rich Alberta showed more signs of cooling. 8 [2 s3 L5 |8 a& g( `! e
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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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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.3 n% o0 s2 I9 g
* B# o: N: p" j; TIn 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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* W4 [7 n( A: @+ APrices 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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$ H# j1 V' j3 }% K' ]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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* N! I2 B0 q) r' r% d3 d- zPrices 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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, S" N* B6 {3 ?7 G4 h0 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.% D/ ]7 M9 i I6 D
4 N) z( A v1 l- I2 U8 X"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.0 Q# X* L- o* B6 _
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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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+ |5 A; j3 f! ^9 A, k© Canwest News Service 2008 |
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