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New home prices weaken in Canada
8 ^' g- S+ E- n* ~" G5 QCanwest News Service
( ]& q3 a: K$ P9 E, z8 rPublished: 7:48 am2 z, M* Q& M; n9 b6 i+ t9 `/ V4 X
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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3 N6 [( F1 K1 k: D! XApril'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.4 y" F& ]) Q! K0 K# |# {9 F
" d3 `; Z4 d$ H, v, l"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.: ^- r+ c, Z. a
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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. / {3 Y7 x; s2 t3 i( b A
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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."
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' q9 ~4 i# d$ J# I* rPrices 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.9 W# O/ D) C3 }( F9 Z$ W& Y2 |, B+ F- q
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In Edmonton, the year-on-year rate slowed to 8.1 per cent - the ninth straight month of decelerated growth. ' q) ?; ?% G3 I" x- Z! 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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7 @0 C$ i$ L: C/ 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.0 w8 S9 h% b+ ^& U, X, u9 M( B
( a+ a7 i, j+ VIn Newfoundland and Labrador "a strengthening economy, coupled with increased material and labour costs, has contributed to record increases," Statistics Canada said.9 g3 o N. A+ b1 l# K) l
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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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! V0 O' c3 V ~: B/ O: n$ M3 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."
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# g+ C; b7 U# Y; x# p: i. h* W0 S© Canwest News Service 2008 |
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