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New home prices weaken in Canada% w/ b1 O, v" ^, W8 F/ g0 `& d
Canwest News Service0 a; T" \1 P/ ]5 \; T: t! e
Published: 7:48 am
; z- b; O4 C) f$ k, ^3 h( dOTTAWA - 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.& q# P" U5 G9 l4 s7 N, u7 T0 v5 `0 X
) y+ z N5 n4 h7 z8 @9 rApril'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.* G9 q& J$ k0 [& n
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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. 5 ?: U+ e( z8 ^8 @, v( F& d& d, w1 D: w% C
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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." j) H( F- B- ^
6 a+ q" e8 c& CPrices 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. ; k b" E# P( ]
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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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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.' z. g7 [0 f8 w& f. \$ m6 P' ^
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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.- Q& I7 C1 |4 T; a6 n( e3 h* F
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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.. G/ }) h+ T% ]" y
; W+ W6 K/ |* p, UNova 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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+ g; v/ G+ q. ^" V4 y4 V( l"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."/ s a8 J) g o( ~3 N% K
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© Canwest News Service 2008 |
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