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New home prices weaken in Canada, ~/ F4 N$ X7 e) S: r8 L8 z
Canwest News Service5 H6 d* y+ q6 k( v i. W4 ~' ~
Published: 7:48 am9 Z: d4 U; h% k1 q& R
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.! z0 h/ h r; W: s
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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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+ Q, w8 `: |( j# ?1 p; s z2 V( p) H"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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, k% i A: A+ pIn 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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- t9 K! n" {8 X. ]' H5 N2 K"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."! L6 a) J6 } q
' g# o1 G+ r: |2 O) iPrices 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/ w4 L& Z$ h: S
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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.# U0 _( ?& K; b( f- o# M
2 [% g7 u; r. n$ f+ K: _; fPrices 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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6 U3 }2 H' Q+ Y b8 r3 nIn 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.$ a1 {4 ~2 z. ?3 H: j
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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.5 d$ ]# J O( w) I8 Z
6 j4 C6 J: q8 h* b+ H y/ R"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."6 T2 p& U1 Q. Q6 c3 j
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+ D) M$ U! b3 Z. e/ T© Canwest News Service 2008 |
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