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New home prices weaken in Canada
- Q9 E- X$ r8 U; m4 r& d5 u) jCanwest News Service
+ `" W' k* A7 DPublished: 7:48 am* W/ ~" z# R1 ^
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.
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b. s9 t" Y- O i: VApril'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.5 t1 \: a' z# u- B8 n
0 m6 L; R2 l8 q2 b @* ?0 r4 S5 z0 x"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.8 A4 j4 B2 r+ g, f2 g
- c/ G* @! n/ `+ p, \In contrast to strong markets in Saskatchewan and parts of Atlantic Canada, home prices in oil-rich Alberta showed more signs of cooling. 2 k* Z! g# v; N; Z" ^
7 y0 i) M+ L6 _"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.". L# i( b0 T+ d3 p6 C3 ]& d6 }0 {
/ ~& R! Z0 u3 W# o& O' C* j0 Z: KPrices 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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, \: ^- B: L( @* k. UIn Edmonton, the year-on-year rate slowed to 8.1 per cent - the ninth straight month of decelerated growth.
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/ H6 e# e' G3 `, OMeanwhile, 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.& M3 \% m1 n9 ^
: F, r; q( ~6 iPrices 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.) ?, k9 P( Q/ U) K$ Q& M' L" c
0 C7 v& E* t" j* d3 WIn 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.9 p/ i& t) |. b" I2 H5 K5 [
4 U$ f6 X5 p4 P U' TNova 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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"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."
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8 ^0 R6 M+ ~! E, T" t4 }+ x$ j3 r& G$ N© Canwest News Service 2008 |
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