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Canada's housing market both vigorous and stable 5 B# ~! a* C% i6 i
. z$ w' I& V( D9 {! l- Country's market poised to show growth throughout 2006 -
5 m) x# U, z( n- J$ I4 f
- a5 m/ s! F+ {, }8 ?5 t TORONTO, Sept. 28 /CNW/ - For most of Canada, the housing market, `) d1 K( O! z+ H; `0 o
exhibited moderate price increases and stable unit sales during the third) h6 q* {! V4 _
quarter. Wide regional variances continued to be the dominant characteristic, M) Y& Q7 C# I5 _7 ^( p
in the market, exemplified by frenzied levels of activity and double digit
5 b$ }4 ~/ S3 f$ I1 Wprice gains observed in the energy and commodity rich Western provinces, and6 b& ~& L# I( j9 S. B. k% X. S" g2 E
more reasonable sales volumes and moderate price appreciation in Ontario,
0 X) H& K$ }7 X9 A X( AQuebec and Atlantic Canada, according to a report released today by Royal- ], _; Z: }* h- V& G
LePage Real Estate Services.
# O8 J( w" F% U3 {- E: @
! J* y' Y7 t8 p8 [9 Y6 j Nationally, market trends established through the first three quarters& v7 _# f/ j5 ]# ]& _+ d% j: i
are forecast to continue for the remainder of the year. Robust economic1 Q( r' |+ R% O8 D1 s
conditions, low unemployment rates, modestly growing salaries and wages, and( Y! A+ [, t: e3 c7 Q
sound consumer confidence contributed to the overall strength of the
' Y3 |6 |$ W4 x) W! P7 Qresidential real estate sector.- i: A S, v! N1 d7 i2 T4 n& n
5 C" S3 {5 A2 Q1 Q# ~ Of the housing types surveyed, the highest average price appreciation
6 g% S: k0 L0 eoccurred in detached bungalows, which rose to $300,365 (+16.3%)
# V/ J* d1 x$ R: e( h# ~year-over-year, followed by standard condominiums, which rose to $211,562
0 _2 Q) w, ]6 S' n- w(+14.2%), and standard two-storey properties, which increased to $365,380
2 U/ x( q# c# t. ^2 c `(+13.2%).% p- u& I( g3 E/ u
+ v7 b M% f2 @3 d
"Canada's sturdy housing market continued to demonstrate steady growth
7 \; z# _" n% x5 t* tduring the third quarter. For all but the west, we have moved on from the' Z4 e9 x- l" n: t$ R' k
frenzied expansion that characterized the first half of this decade, and are
( G5 o+ Y2 g+ c+ J, tpoised to show continued growth at a more moderate pace," said Phil Soper,
5 E) U! Z# A4 t) Spresident and chief executive officer, Royal LePage Real Estate Services.
+ m$ B3 u6 _ M9 F3 Z$ B"Gone is the sellers' market that we have lived with for some years. We/ I9 u- W# {/ T) A
welcome the more reliable conditions that are characteristic of a healthy
0 Q1 e {/ | i2 m: Bbalanced market."0 S& o8 S4 u; W0 I( B- o
" W6 @1 L1 E9 b8 X
Despite the double-digit rise in average national house prices,+ B7 i7 R2 ` e2 o; [+ `
considerable regional variances were exhibited again this quarter. The shift
3 p4 n! v ]# t g8 N Pto balanced market conditions, which began in late 2005, has continued
4 k; G6 y% ^: Pthroughout most of the Central and Eastern regions of the country. In the core
* R' Z0 E! i1 k4 F6 d, ?; cenergy producing western provinces, the combination of very high in-migration,) V9 I7 @7 ?( c
manageable affordability, and a shortage of inventory has driven record
5 X3 q# _$ x# Z9 Nbreaking price appreciations.2 m0 x( W2 V3 ?: @6 x+ F
* E' F. O4 W# r( c6 L Echoing the second quarter and supported by Alberta's rapidly expanding4 o) A4 V4 Y8 ^- D7 b" S; u
economy, Calgary and Edmonton led the charge of Canadian cities with the7 a2 c( ?' |/ f9 @9 ?( J
largest house price appreciation in all housing types surveyed.
/ b, e+ o0 p H6 l8 X; F/ R/ c2 ?2 x+ g g' [
In Ottawa and Toronto, growth remained steady, supported by solid
# W4 I# I: ~4 v9 P' R6 Feconomic fundamentals, an increase in available inventory and strong consumer
" F4 b0 ]2 E& |1 \4 L0 Nconfidence. While the pace of price appreciation in Ontario leveled off
4 X6 q) P1 E0 z6 l& Nslightly, the province's real estate market remains poised for modest growth.; H; L3 R( O$ L3 [- z* x
In Atlantic Canada, new housing and condominium construction offered buyers5 e+ }. v3 i5 Q' ]( ?0 q
greater selection at more competitive prices, resulting in a slower rate of& a" l( S, X; v# B- K
price appreciation when compared with 2005.2 t- U4 }' G/ q( @3 t
, V% k! ^9 Q/ h3 B" R* N
While the pace of growth in Canada has slowed, the domestic housing5 g( C, j1 \8 F W" O. y. s
market is expected to outperform the American market. The economic and3 N* F0 X' p5 X
financial fundamentals driving the residential real estate sector in Canada- M0 L7 \9 C, A- {/ }; ~
are markedly different than those found in the United States.: r, D8 L! M% Y9 f, P! _
$ z# u/ l6 d: _0 O# m. x! ~% v Added Soper: "Canada's housing market is likely to outperform the
. b0 F: E. E$ i4 H: \" K& U4 @1 kAmerican market through 2007. A number of factors are working in Canada's
8 V8 r# _1 I8 d$ K" `/ |favour, including healthy personal and governmental debt levels, the
0 l/ R) g) ?6 @9 _relatively modest rise in interest rates in our country, and general
) C+ R4 y1 h! H: g3 a- vaffordability in our major cities. In addition, Americans are now seeing the9 `% h3 d& z b C
downside of a tax system that encourages maximum homeowner leverage, and
+ G, U" k- g: \: R; i$ V6 Z' |7 maggressive financial products such as zero- and negative-amortization0 }, ~1 x$ J0 H; h5 r) b
mortgages that work only in a high price growth environment."1 m2 L7 C4 Y" \( y
% C* W3 A1 r- h) i* R! E
<<* b- e/ f& H8 o1 H% X0 P+ \
REGIONAL SUMMARIES0 @/ l" P, ]. k$ E
>>
4 n8 i/ G4 K& u; v( ^; E8 L
( c' t0 V, ]+ ~6 }5 v- {, \ Balanced conditions continued to characterize the housing market in) i, s* _- Q4 w
Halifax, as significantly higher inventory levels helped to moderate the rate8 p. K/ s3 V) A- }2 E
of price appreciation. Buyers were increasingly choosy, taking more time0 _! t$ h+ Z/ l- B6 O3 c. i' f
looking for newer, low-maintenance properties that were not in need of
' l* g! c* Q% ]' A. i, _renovations.
, l0 ?' W( \5 F& A/ t% V9 J% U: q2 F) m8 j
The housing market in Moncton remained healthy and strong as a slight
1 x# p9 g# k4 \1 z, {7 @increase in inventory helped to moderate the rate of price appreciation* s# M6 N N P6 w7 {; H
compared to the same period in 2005. Activity was brisk throughout August and- W" r9 \- n- z. ?
September and is expected to remain this way through the fourth quarter.
9 W* Q- b$ {" d- F: f+ `/ A6 p: r( N+ c$ j. {
The housing market in Saint John underwent its traditional summer- G- Y# N/ K2 y' Z7 d9 F8 y" n
slowdown in the third quarter, with activity picking up towards the end of the
3 o' s$ u f/ C7 [, `quarter. The local economy continued to thrive, as construction on a new# a2 h3 i' X8 O( }
600,000 square-foot shopping area has begun, bringing several new box stores
5 ^4 f* `0 T- K! }+ R% Z% oto the area. Buyers have begun seeking less expensive fixtures for their homes, r3 U5 |5 ~# G5 v t" S% ?
and are instead opting for more affordable housing options., Z7 m, E. |( ^$ R9 h
: g& d* v4 U( h! f& H In Charlottetown, the housing market started to move towards balanced+ D+ S" A, Z5 c# V( S
conditions, as some sellers had to begin to lower the asking prices on their
( g# n! J! k+ u( Phomes to make them more competitive. Activity from out-of-town and US buyers' i j" z7 W6 z0 C5 S4 |
was down slightly compared to 2005, likely attributable to the strong Canadian5 d" R9 R+ }& T
dollar. Inventory levels began to creep up in the third quarter, providing+ J: T, y7 G# I# G: }5 A( o* N
buyers with more options when looking for a home.
3 ^$ ^+ O; `' M6 S7 u
/ d* q! f( |' U5 M% L! ~ Activity in St. John's slowed slightly in the third quarter, particularly
. N. M1 G# ]3 x1 A; b. ?among higher-priced properties, where there was a slight over-supply of homes4 X8 J% p# r' J+ @$ k" _+ Q
priced over $200,000. Listing periods have increased when compared with 2005,, I3 P; `: t3 p0 z, Y. f6 z! j
as some of the pent-up demand that had characterized the market over the last
1 o* y: A: M7 Pfew years has been satisfied, resulting in more normal, balanced conditions.* y J E9 a- c
5 b+ o% c* f2 s# Z# I6 i
Montreal's housing market recorded modest increases in average house; r& s3 M$ u5 s3 s. _2 q1 j$ {
prices, due to a slight seasonal slowdown in the third quarter as inventory
5 ]/ ]" [2 s4 n e' K3 \levels rose. Part of this can be attributed to the fact that many renting
+ z5 D- Y. s. [7 f% m( y$ k3 Y% Pfirst-time buyers were motivated to close on the purchase of a home by July 1,5 i P7 A' Z' j' M( l0 x
when rental leases expire in Quebec. Once this date has passed some of the! I6 d- m# ~" F. z# S
pressure is taken off the market, allowing buyers to visit more homes before5 |: V# W9 p. U
making a purchase.5 p; r B5 c9 t, y9 m" m7 \. |
D$ T# }! R( _4 R) U6 P h
Ottawa held its position as one of the country's most stable housing
3 W1 U$ l; F$ }8 cmarkets in the third quarter, reinforced by a vibrant local economy and strong
3 W- l; {+ ?" U0 q1 Vconfidence, resulting in modest increases in average house prices. The city* ~0 K' Q" [" y$ ?0 d6 ^$ [* p
centre remained a bright spot in Ottawa, with homes in this area attracting
, e: p& Q! F6 Iattention due to their convenient location and proximity to downtown
: D. y) q% T) t6 ^/ h: Y0 L- g1 J( hamenities.! I8 Q% P' \. j, U% `" H" E
! a' u7 ~0 E; N5 c" {% x The housing market in Toronto sustained healthy activity levels
! c w. K) \* Y4 \0 i7 y6 Cthroughout the third quarter, as a strong economy helped to maintain demand5 i7 O0 i/ t9 M
across the city, causing average house prices to rise moderately. Toronto has8 t/ I6 T. j( h. [) ~; g/ f
continued to experience modest growth in average house prices, and has been
3 }. K& E3 u. _ |, Gdriven primarily by purchasers who are buying homes as their principle
- }, ?- r1 k4 l8 T5 X* j, sresidence, rather than for investment.
5 }' q+ v# @' r- X. N
$ M/ ^. n3 a% p, F The vibrant Winnipeg housing market continued to show its strength as* V* Y [- W) O+ n; ~
house prices rose during the third quarter. The booming local economy resulted
7 M6 i/ h: w- o' E3 J% ^4 ~in a historically low unemployment rate, helping to bolster consumer2 q& b" ~& @" b" k
confidence and Winnipeg's ranking as the city with the lowest capitalization
0 N+ v6 Q( \+ T' e7 E8 ~8 R# h" rrate among the country's larger cities - helped to encourage buyers to enter
2 B: E+ u. r9 n% ]% y, I: Ythe market.
, z0 g! w, z9 w# E J2 ]. g
- b! l% w/ P3 o5 k* d/ @( [# _# l In Regina, the market experienced a slight seasonal slowdown through' q4 _) F" w; `
July, as there were fewer purchasers in the market due to summer vacations. In
8 ~, }# |( [7 y8 W6 eAugust, activity resumed to the busy pace previously seen in the spring0 d5 Z/ N/ \4 L/ a! U Y- f. H
months, as the influx of purchasers made it more difficult to find a home due$ F, ]$ X5 K6 p& B3 ?
to the shortage of available inventory.
\3 S& N3 }" _7 T; W, I1 {. z
6 G* x* E4 T6 c6 P9 F Activity in Saskatoon remained brisk as the market maintained its* i' W! ^, H7 E, s
momentum from the busy spring sales period. The economy in Saskatoon remains
) p( R8 @ T( @! B" S* c% n" ivibrant, as employment opportunities are abundant with many businesses* ~- E" x v i- S4 O' S
struggling to make hires and having to recruit outside the province.' \" p1 U0 K* Q7 W! F
8 G8 _* |: q- `/ Z" T3 U
Calgary's housing market recorded blazing average house price increases) e# j, N/ ?8 `& C& l
in the third quarter, in all surveyed categories. The burgeoning economy, low8 X' n7 H# y: N* H9 c& R4 i0 f7 C
unemployment rates and low inventory levels remained the leading factors that8 q t7 {5 V* z) n3 {
pressured Calgary's house prices upwards. However, regardless of the soaring: }) Q. o; v4 {( G& o: f$ F! {' g
prices that characterized the market - even during the typically slower summer
1 C# J1 o' T: m4 |2 e- M$ A$ Aseason - it is expected that activity will become slightly more balanced, as
" ?4 h" C2 x @1 y& l5 ubuyers are becoming more reluctant to participate in the frenetic activity.7 R; I: x' |- |' E. h2 K [
/ N' ^+ R S4 h; a' m- d
Edmonton's booming local economy continued to thrive in the third quarter
0 R! E6 d+ U9 r, x0 oas activity in the oil sands north of the city continued to flourish. Edmonton
, K! i; U3 U2 D; x; l' B+ Jremained the hub of activity for those coming to work in the oil industry,1 t/ a4 B/ W8 O [# {6 j. ?' b, k
maintaining tight inventory levels across the city, resulting in prices
+ ~6 ?7 W4 m$ _- A6 J2 cincreasing at record levels. However, as inventory levels continued to improve
+ k3 a& f% U- c3 V& M( Tin the third quarter the rate of price appreciation should moderate slightly' H0 x+ E- s, }5 d$ W% P, O' m- P
towards the end of 2006.
, a. J' ~2 c7 ?, [3 R$ B! O. P& g& W. r" e% Y
While Vancouver has seen a slight reprieve from the severe shortage of: B5 {# [3 r* _' X8 D+ i, Z
inventory that had previously characterized the market, supply is still unable
7 j; P; v( Q2 c4 ?to meet demand, driving house prices upwards. Vancouver has a very diverse. Y9 k" M3 l: {
group of active buyers - from first-time home buyers to baby-boomers to9 Y- [% j) I8 r1 R/ K+ ?
foreign investors - all of whom fuel the demand for houses, placing added
2 z$ S; W3 |1 A8 F! ^$ m* T+ Hpressure on tight inventory levels.
) n5 U# ]7 V( b Y% Q1 F3 D( _3 g' O p* `3 Q; n: ~$ ] x: |
Victoria's market is vibrant and supported by strong economic
/ W! ~* X- h }$ {- Ufundamentals, fuelled by a booming tech sector and a migration of young people, {9 \! x. X( G, t* @
into the city that has continued to support the area's house price increases;, W" {( n& o( w4 c- M5 K+ _' c; U2 q& \
while increased inventory levels have afforded buyers more time when searching
; }7 J6 n' |3 ~ _for a home, helping to normalize the market's pace.
- e" Q" f E% g1 P* x
, s. v( s5 B4 J3 E3 G <<
9 W C! _% R; x3 S6 @3 B Survey of Canadian Average House Prices in the Third Quarter 2006
( z9 n: r- a, m$ M+ P% S$ ?. u8 i; U9 |
-------------------------------------------------------------------------+ R) J, Q7 M1 d
Detached Bungalows Standard Two Storey1 o8 b: b6 G1 Z
-------------------------------------------------------------------------% I. t8 e9 g, U/ }0 r3 S' r$ O; L
2006 Q3 2005 Q3 Bungalow 2006 Q3 2005 Q3
! I6 m6 ^+ p r! a Market Average Average % Change Average Average& ]% h! w: M/ o C( G) |
-------------------------------------------------------------------------( H) q) t3 c8 H6 U4 \
Halifax 186,333 173,333 7.5% 198,667 199,000
) l5 D3 T0 i# W: | -------------------------------------------------------------------------" K7 b; N5 }/ W1 m4 q& u; I4 z
Charlottetown 145,000 141,000 2.8% 175,000 170,000% w7 }0 _/ x' v2 n
-------------------------------------------------------------------------
) b. y( k( a6 z* r8 \9 a q# ] Moncton 135,000 127,000 6.3% 129,000 123,000, l8 {7 ^$ C) [/ ?
-------------------------------------------------------------------------
0 J8 h$ i9 T8 g U% e Saint John 141,200 142,900 -1.2% - -9 o: O K% X! x8 f. {
-------------------------------------------------------------------------
7 \- T f3 t( P1 I1 h St. John's 143,667 142,667 0.7% 200,667 202,333
3 U6 }3 |' a0 k) N1 U* i -------------------------------------------------------------------------
+ c( n2 y& D! ~5 p Atlantic 150,240 145,380 3.3% 175,833 173,583
- p* U" x" Q/ k% V -------------------------------------------------------------------------; Q: S+ j7 a$ E! s" V3 I) E5 s
Montreal 213,691 203,500 5.0% 321,141 316,1857 m% W2 {: _( T7 j
-------------------------------------------------------------------------
1 g) H- j, \/ u8 y% G Ottawa 290,083 278,417 4.2% 285,667 273,250, }7 T5 I& w/ j+ g/ @
-------------------------------------------------------------------------# b8 d1 k/ j( G/ \' L# l
Toronto 373,368 355,882 4.9% 481,523 474,766+ H: s! G7 H3 T+ Z1 {* w1 E
-------------------------------------------------------------------------' C" y6 b$ K8 U$ _( \3 {5 t
Winnipeg 181,579 159,860 13.6% 202,337 180,707
. Z+ i- [3 A# K -------------------------------------------------------------------------' H: Z* _6 |+ i$ x9 B, b
Saskatchewan 170,667 156,083 9.3% 182,600 166,500
8 u2 i1 g% a: P -------------------------------------------------------------------------
1 ]4 {) g1 A1 I& ~& s Calgary 395,067 252,411 56.5% 405,778 264,3893 ]) S! J& H$ ?" p: h& P0 p- }% _
-------------------------------------------------------------------------, d5 B I4 \2 A/ ^/ _' p& ~# E
Edmonton 286,857 194,857 47.2% 316,429 206,714! h4 q- @5 ~+ U/ p
-------------------------------------------------------------------------( M8 u. x4 ^, t0 N& m& S, R
Vancouver 704,250 601,000 17.2% 794,000 697,5001 S0 P$ N- ~4 T! }
-------------------------------------------------------------------------3 n8 s4 W B7 f1 V0 _* P8 ^
Victoria 375,000 348,000 7.8% 403,000 391,000
1 x k$ d1 X' m# `( L -------------------------------------------------------------------------
" O8 Z$ h) r+ r National 300,365 258,202 16.3% 365,380 322,860
' @0 I* q* g7 I# U1 i3 X -------------------------------------------------------------------------
/ ~" }/ E% u: c1 _, l7 ~0 M& \
; X3 W* @: k% b( n m8 B -------------------------------------------------------------! f6 c! d2 u7 }2 x) Y* b9 n
Standard Condominium8 @7 `7 ]0 Q3 O* ?" e$ ]9 ^
-------------------------------------------------------------2 C# m- c3 \) f7 h7 g) E* o
2-Storey 2006 Q3 2005 Q3 Condo
6 K' }0 S- H8 S# d! p Market % Change Average Average % Change; F8 w$ ]% i& O b$ s1 L
-------------------------------------------------------------
: n+ {& d8 [. I9 s# m Halifax -0.2% 142,000 103,000 37.9%3 o# C2 E' h3 W
-------------------------------------------------------------" P0 H. A, @$ n6 C$ F# C% g
Charlottetown 2.9% 98,000 98,000 0.0%: s7 V" }% x0 R( W: D5 E
-------------------------------------------------------------
- I. s+ |8 ~* G! P8 q Z Moncton 4.9% - - N/A
& K0 f/ `0 ?% y) Y -------------------------------------------------------------
! w( j% D( k$ ~9 D+ A Saint John N/A - - N/A7 |) P1 {& p/ }
-------------------------------------------------------------' f. o) a. d! a- Z# r! I
St. John's -0.8% 146,333 145,667 0.5%
4 ` U! j2 T+ @( Z4 c0 \ ------------------------------------------------------------- ~/ s+ W4 b1 G. |& \' j
Atlantic 1.3% 128,778 115,556 11.4%9 M& c* {+ H: O) h' ^' _" ]; R1 g1 I
-------------------------------------------------------------
8 X/ w7 @# \1 @3 {7 ?& \* h0 e Montreal 1.6% 193,190 188,016 2.8%
c7 A2 m+ [3 ^1 Y! D1 [# ~6 s -------------------------------------------------------------
' k5 o" S" M& [. n Ottawa 4.5% 181,083 172,250 5.1%* W0 l; A+ F5 F; p W
-------------------------------------------------------------: G Q# Q$ Z- ]4 ~8 A
Toronto 1.4% 252,088 242,918 3.8%
6 l: t; o- A3 |1 ~6 l, i, V8 u% b -------------------------------------------------------------) o2 z& g2 M; i6 n
Winnipeg 12.0% 105,648 96,008 10.0%. u- c% h; u0 `# R- ]3 W1 u
-------------------------------------------------------------8 h7 V" K' k. b W+ Y
Saskatchewan 9.7% 106,250 101,000 5.2%0 B5 c) D+ k' j [6 y2 C4 c
-------------------------------------------------------------* V8 f6 P/ n$ S
Calgary 53.5% 245,844 153,867 59.8%: @- b+ ^+ ~) r% o4 ?$ @/ ]
-------------------------------------------------------------
7 L/ _* Y/ { u4 [ Edmonton 53.1% 200,433 131,500 52.4%
7 G$ M' N. M/ r+ D1 U -------------------------------------------------------------
N! u) v0 S6 v# n/ [* u# y5 K Vancouver 13.8% 366,250 323,250 13.3%
+ P3 `) A9 T4 R* B -------------------------------------------------------------! Y9 o7 c" c: T C
Victoria 3.1% 229,000 220,000 4.1%/ u/ V% D4 V6 r) X8 o& o/ H2 f6 v
-------------------------------------------------------------
! F# _& p5 T9 R8 v National 13.2% 211,562 185,296 14.2%
# x9 a& p- [& g- P5 R9 z -------------------------------------------------------------
: e3 \: a: E6 ~' N4 q6 r >>
* `" v' A/ ?0 K W$ ? B j
3 m- A$ R3 y7 m/ ~ Average house prices are based on an average of all sub-markets examined
) v" l. V, k) z `6 I+ f& B+ tin the area, except for the smaller markets of Charlottetown, Moncton, Saint) d1 r: \) _8 d; z5 |8 a
John and Victoria.
5 T, j0 g( V* p3 F
% [7 N) T. M9 S( q' {' M The Royal LePage Survey of Canadian House Prices is the largest, most0 ^ _ f3 K( s+ M' i/ B* F# J
comprehensive study of its kind in Canada, with information on seven types of
& i5 o+ d* s' n* vhousing in over 250 neighbourhoods from coast to coast. This release
' M4 a. y+ _) J$ Qreferences an abbreviated version of the survey, which highlights house price
3 ^: F5 R0 Z7 h+ V3 G8 z% k4 S( O3 F1 s1 itrends for the three most common types of housing in Canada in 80 communities
& J5 J4 R6 Q: }- q- i7 Facross the country. A complete database of past and present surveys is
# n& }/ O S/ T) ^available on the Royal LePage Web site at www.royallepage.ca, and current. J8 \( x& h; _ c; z* p6 J. d
figures will be updated following the end of the third quarter. A printable
$ G) \1 b) r/ o3 [version of the third quarter 2006 survey will be available online on
5 z9 B8 g0 O: Q' w+ @) hNovember 15, 2006." q* t! I: ?4 b/ n
Housing values in the Royal LePage Survey are Royal LePage opinions of
' d7 s e( C T& s" Qfair market value in each location, based on local data and market knowledge
/ [, ]) J" }' nprovided by Royal LePage residential real estate experts. Historical data is& j$ C/ H6 J6 e: W
available for some areas back to the early 1970s. |
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