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New home prices weaken in Canada9 c' e: f9 h2 |! g5 P- s8 }
Canwest News Service; A. o, C% i7 j: c5 g9 z( e) R
Published: 7:48 am
8 i( u- o1 o1 s$ b% j" K. s0 AOTTAWA - 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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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.! V. t" ~. [* _1 e
" J" K7 ]( Z3 B- J- 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.- N) Z( z* N2 |6 q# {
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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.
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$ [' R" ?: S2 f2 _"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."4 n: g J: A: {5 h1 M5 H8 b
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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.2 z8 I8 P9 V+ R/ H0 L" g2 _. y
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In Edmonton, the year-on-year rate slowed to 8.1 per cent - the ninth straight month of decelerated growth. ) Y* I. W6 p* b1 l/ }! o
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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.
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- ?4 X/ w6 C9 S; _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.7 k* K* ~" z0 ?8 W1 u
0 I& k$ n/ k7 } V _ [; A6 cIn Newfoundland and Labrador "a strengthening economy, coupled with increased material and labour costs, has contributed to record increases," Statistics Canada said.. v8 w' {; R( a: ~, ^# K
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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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/ Y2 W2 v2 k) C5 s4 H/ e"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.0 [4 t% S# E t0 N8 d4 D
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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.") z# k9 d; k/ o' d$ X' V$ Z
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$ x+ F; W5 h a( u% P© Canwest News Service 2008 |
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