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New home prices weaken in Canada: ]$ k7 S# M; `& S) |2 v; Y
Canwest News Service1 X& e- F) O9 B& ^' Q: h
Published: 7:48 am
; s2 G# x2 p, c( o2 r$ SOTTAWA - 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. C) R- U. n* ^1 d5 Q, R7 w! n
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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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$ i' O1 d2 q5 Z3 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.
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In contrast to strong markets in Saskatchewan and parts of Atlantic Canada, home prices in oil-rich Alberta showed more signs of cooling. 9 N5 |% U8 m! y( e& }8 Q. Z
. y- V7 h4 W# X1 c. T8 y. }' G# D"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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5 m2 ^# S& J% V+ V, m- ~" F( [& @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.
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4 c2 r! [' x9 c8 W& P( \$ HIn Edmonton, the year-on-year rate slowed to 8.1 per cent - the ninth straight month of decelerated growth. ' \8 T6 W3 L. C7 H) A5 [7 N
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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.$ ^0 C5 v" w2 f% D& X2 U
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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. Q1 `# `: N8 E/ {3 T- V5 x& R
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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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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.
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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.
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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.
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/ @+ [: }3 n( W6 B6 H% G1 B"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."' F' a+ v+ u: ~
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0 t; E6 w& s2 u& n3 }© Canwest News Service 2008 |
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