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New home prices weaken in Canada
& v g, N7 i+ K* XCanwest News Service
0 }1 s! X! S; y J yPublished: 7:48 am
o! h. Y4 v# E5 ]1 o* GOTTAWA - 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.
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5 V- `1 G, h/ 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.
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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.
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' P3 g) @3 \6 V0 t5 `In 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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"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."1 ~' U8 J8 Y* W* S2 J) y2 Y
0 k5 F9 _% u( ]* m5 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.0 x7 u* w0 L& l2 l9 b {
+ _* `0 R& F& A. ^In Edmonton, the year-on-year rate slowed to 8.1 per cent - the ninth straight month of decelerated growth. : K9 x! w$ P2 @
& I+ j. U1 X, P1 z5 q5 m+ R- p* EMeanwhile, 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.+ X0 W4 I/ n& 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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; a6 w, a5 }* J6 j5 }6 F7 DPrices in St. John's rose 16.3 per cent in April, up from the year-over-year increase of 12 per cent in March.; q4 T( S l1 S1 D W
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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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+ U4 E3 `$ N& \# N/ J9 R& @0 k"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."' D% J' H* J) x( m
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5 ~- L, C v+ e0 ` Z3 |6 \2 ?) z© Canwest News Service 2008 |
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