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New home prices weaken in Canada
. a+ n0 u5 ^3 y! L7 r2 S1 H, zCanwest News Service
: X/ L0 J4 W: s3 m8 LPublished: 7:48 am
^$ M% Q+ {! I- H4 OOTTAWA - 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.4 u. A/ w5 \* Y# I0 u
6 W5 A- \& S$ H3 qApril'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.9 X" v7 L( W1 i) e
6 R) ^( g: k5 M. R% V"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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S8 P4 f& y' U1 X' M& H0 `/ dIn contrast to strong markets in Saskatchewan and parts of Atlantic Canada, home prices in oil-rich Alberta showed more signs of cooling. 5 R' O \# L3 A
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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."' q. n/ U( y1 w" A9 C6 B6 i: [
' \, F: p, U! G7 u) m3 oPrices 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.- t# ^: C/ G, {' ]5 X
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In 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.' A F5 D# Y" b
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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.1 ^6 ^( z/ h$ h; N0 m- G+ 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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8 q6 S7 N$ |, n2 EPrices 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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+ Z; a* V6 V$ m$ c! SNova 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.5 O* F4 K7 E$ \; I- X" z* n
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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."5 ^: K3 E+ |' `# P. M2 m
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1 b6 ~6 w% L3 e$ ? M© Canwest News Service 2008 |
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