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New home prices weaken in Canada7 V0 i3 |% r4 R8 a! E m7 F
Canwest News Service8 y) i$ V- B+ J/ m/ X4 D
Published: 7:48 am
& K2 i* e7 Q) J" A% k9 i6 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./ t# H" z& m+ `" x' 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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% w% ~6 f$ s7 Z7 ~"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.# t6 c7 N% l. g+ W$ ~( ] I
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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. ; ^, Y, D( t* o/ e
/ h+ d' U% O2 _$ G$ ?"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.
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In Edmonton, the year-on-year rate slowed to 8.1 per cent - the ninth straight month of decelerated growth. " ~, \% B ~) ?' j6 I
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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.! s! A# p; M- q; h, O$ l( c
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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.
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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 R1 {" S/ ?" j! }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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/ A2 q0 {' \8 g+ l3 bNova 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.. k, h( c( w" p7 n, k* u1 I1 j9 e
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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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"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."' O) |5 ]& m) n4 T& T: S% v9 u
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© Canwest News Service 2008 |
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