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Canada's housing market both vigorous and stable ! `$ P" s- {; y9 j$ S
9 F% u. W% M7 G# B/ b' t; e
- Country's market poised to show growth throughout 2006 -
+ ?& b- H$ S8 M% b0 M b9 S# S' V- W! A
TORONTO, Sept. 28 /CNW/ - For most of Canada, the housing market
+ P/ _" e& O- Z* W) D3 vexhibited moderate price increases and stable unit sales during the third
0 c( l1 u0 \, j8 n1 {quarter. Wide regional variances continued to be the dominant characteristic" i$ Y0 ~* O9 W7 j0 `7 z
in the market, exemplified by frenzied levels of activity and double digit; `8 N7 C0 H; J
price gains observed in the energy and commodity rich Western provinces, and
. e5 k, x7 c/ l0 {( Zmore reasonable sales volumes and moderate price appreciation in Ontario,
, `( a9 @ l' n: P" XQuebec and Atlantic Canada, according to a report released today by Royal& R! O' B5 L% q$ l
LePage Real Estate Services.6 | s* \; V/ m. N2 [$ O( ]
! I8 P/ S& T) i4 z& g1 X# r* v
Nationally, market trends established through the first three quarters5 q8 h8 ?: V" Y6 y" T
are forecast to continue for the remainder of the year. Robust economic9 w# }5 p @. U; c$ {1 ]6 w/ E* u
conditions, low unemployment rates, modestly growing salaries and wages, and
6 {& ] N, p6 ~" g: Ssound consumer confidence contributed to the overall strength of the
! v C+ A# Y9 {; Eresidential real estate sector.) U# c9 ?5 t2 j6 _7 |
0 l6 C6 B) b; Y3 d9 G/ U Of the housing types surveyed, the highest average price appreciation1 P" Y: k" a& m% J* y
occurred in detached bungalows, which rose to $300,365 (+16.3%)
/ m3 N! \8 m0 b+ _% p2 S- Jyear-over-year, followed by standard condominiums, which rose to $211,562
, A. R+ O! d8 K" s& W(+14.2%), and standard two-storey properties, which increased to $365,3800 E# }+ ?1 n9 D* u
(+13.2%).3 b) I# ^* p- e! s+ o
. r5 W! O6 c# ~' J. U
"Canada's sturdy housing market continued to demonstrate steady growth' a0 V: G9 B! g Z, p0 z" ^
during the third quarter. For all but the west, we have moved on from the) [5 v4 ~- \( ~! W6 U1 d$ T
frenzied expansion that characterized the first half of this decade, and are
2 A4 E5 j$ j+ g) j# }poised to show continued growth at a more moderate pace," said Phil Soper,
, o+ k w- @; q$ |, Cpresident and chief executive officer, Royal LePage Real Estate Services.
4 @" f# Q/ o2 E9 v2 L"Gone is the sellers' market that we have lived with for some years. We; O+ T8 @2 B8 y; Q K" d
welcome the more reliable conditions that are characteristic of a healthy3 D& K5 |8 d3 v2 d# b4 S
balanced market."
- L; C+ c1 x0 u2 d
. s% \, p& d( n Despite the double-digit rise in average national house prices,
! K, O& ~" T. r3 ~" bconsiderable regional variances were exhibited again this quarter. The shift
9 D/ N$ z! ^+ Sto balanced market conditions, which began in late 2005, has continued5 d6 n2 w% N' ]
throughout most of the Central and Eastern regions of the country. In the core
5 i" E; N( A- C8 ^energy producing western provinces, the combination of very high in-migration,
2 I: B3 B1 @! [- Hmanageable affordability, and a shortage of inventory has driven record' n; u; U7 X4 |$ w( L, G
breaking price appreciations.
1 p" e$ b& k6 R. J+ E4 J2 v) g) H* Y! y7 t) \
Echoing the second quarter and supported by Alberta's rapidly expanding' U4 m) Z, c+ @; ^# ~( h3 \
economy, Calgary and Edmonton led the charge of Canadian cities with the; ~9 I% B& x0 L4 f+ x' M
largest house price appreciation in all housing types surveyed.
5 x J, E; L$ M6 o$ Y1 b0 X3 h# J4 l9 j# R( V9 O+ ]2 k4 e/ f
In Ottawa and Toronto, growth remained steady, supported by solid
7 i/ x7 f6 Q# a3 xeconomic fundamentals, an increase in available inventory and strong consumer3 v- H* J# x0 o% O& J$ x; R" Y
confidence. While the pace of price appreciation in Ontario leveled off- J3 `: `: ^! }( ~3 b# G
slightly, the province's real estate market remains poised for modest growth.: z- W8 f$ W; ^; F
In Atlantic Canada, new housing and condominium construction offered buyers
9 r1 Z# P( l) T5 Ggreater selection at more competitive prices, resulting in a slower rate of6 y8 d' d- S8 E* E$ a! `
price appreciation when compared with 2005.
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While the pace of growth in Canada has slowed, the domestic housing* L3 R% W) H6 n
market is expected to outperform the American market. The economic and
% p* ]" v: s$ Zfinancial fundamentals driving the residential real estate sector in Canada
: W- B! I9 U3 M6 l4 O" g" |1 Iare markedly different than those found in the United States.
$ r: J2 g1 n' |& ^# {, Y, |6 g: G* Q. t3 L% w
Added Soper: "Canada's housing market is likely to outperform the1 j. w! D% J* w5 O( u: g
American market through 2007. A number of factors are working in Canada's+ s4 ]! ~7 g: y
favour, including healthy personal and governmental debt levels, the
- L4 D) M' c% brelatively modest rise in interest rates in our country, and general
L6 x( O* b/ x7 r2 v" maffordability in our major cities. In addition, Americans are now seeing the& N$ S1 G( \ k! z* [; [2 ]
downside of a tax system that encourages maximum homeowner leverage, and) ^+ U7 M0 } l# x2 b7 w
aggressive financial products such as zero- and negative-amortization( [2 C. m' C1 W) g8 m& e/ h
mortgages that work only in a high price growth environment." L6 \* a- n5 C! y! S/ _, \
+ Q0 n j' |0 ` E, R- }0 f <<
( _6 a0 k N8 Q! w* P REGIONAL SUMMARIES
% j8 D* ~. J1 h" C0 q W* X5 n >>; u+ V% Q0 I* p$ T7 E0 J# r J
$ U% I# H, t9 o Balanced conditions continued to characterize the housing market in5 J* ^ B# b: u- o, `- X
Halifax, as significantly higher inventory levels helped to moderate the rate
$ j- j1 g6 J5 U8 Gof price appreciation. Buyers were increasingly choosy, taking more time. V! l0 V* D1 K& ^2 {' Q( r
looking for newer, low-maintenance properties that were not in need of! n0 w$ W( ^, Q, M$ r# W) o4 q' E' X
renovations.
* H. h7 @$ a) ~* k: `
2 c8 {5 _* G5 G4 Z The housing market in Moncton remained healthy and strong as a slight
5 M% v: B4 G" w; K# Bincrease in inventory helped to moderate the rate of price appreciation9 g. `. R: X# f& L0 G. T# o6 R
compared to the same period in 2005. Activity was brisk throughout August and5 T: ]$ E6 O6 v( d
September and is expected to remain this way through the fourth quarter.! m. R3 ]5 _0 `( y0 ]6 Z) T0 C3 ^+ q: |
1 s+ }! _) @9 y- ]$ j. C5 k
The housing market in Saint John underwent its traditional summer
3 P- b3 s0 E6 _5 X7 S; r( n8 Nslowdown in the third quarter, with activity picking up towards the end of the
l) _' ~8 Z) q$ }' Y# k! N! Vquarter. The local economy continued to thrive, as construction on a new
; o: m5 ?5 |' K9 o) y; u600,000 square-foot shopping area has begun, bringing several new box stores
. d6 }) V. ]3 v. F$ s- f! V* m1 hto the area. Buyers have begun seeking less expensive fixtures for their homes
, l9 s9 _3 g$ G i+ G4 uand are instead opting for more affordable housing options.
' V# y* E) I6 B3 f* y1 v' y/ I9 g$ N h" ]4 B g. _
In Charlottetown, the housing market started to move towards balanced
" t, v% r# v# P* o/ o* uconditions, as some sellers had to begin to lower the asking prices on their+ v& \1 f- Y8 Z5 J
homes to make them more competitive. Activity from out-of-town and US buyers: d3 \0 B& {* p: I
was down slightly compared to 2005, likely attributable to the strong Canadian
. o/ T+ i, H. Q* \+ ?3 T+ ~7 udollar. Inventory levels began to creep up in the third quarter, providing6 U& s3 J/ s, M% ^5 [# O
buyers with more options when looking for a home., m6 u8 G, [5 Z' U4 J! h! Y I
. V1 }1 m+ B ]/ p7 e9 G O
Activity in St. John's slowed slightly in the third quarter, particularly
( N9 @4 @7 o5 _+ aamong higher-priced properties, where there was a slight over-supply of homes
+ U: Q* v& b) c$ `4 T+ X/ j Xpriced over $200,000. Listing periods have increased when compared with 2005,
2 e% g9 \% v" }as some of the pent-up demand that had characterized the market over the last* A/ `: }8 @9 W* x
few years has been satisfied, resulting in more normal, balanced conditions., n: W+ [ J1 N; e5 `6 Y1 S6 u2 r4 T
( S" z1 k# F/ F8 X Montreal's housing market recorded modest increases in average house
8 Z* h; d+ @* S# R+ w4 aprices, due to a slight seasonal slowdown in the third quarter as inventory
4 R& [( T0 ~! A. `5 n. p3 g0 klevels rose. Part of this can be attributed to the fact that many renting
, W6 u# D+ q3 \first-time buyers were motivated to close on the purchase of a home by July 1,
/ F# ? f( X; r, b. J% a0 }when rental leases expire in Quebec. Once this date has passed some of the
# g% [2 J2 l6 a9 Jpressure is taken off the market, allowing buyers to visit more homes before
2 d4 C* _/ P1 _# Q5 J9 y- }making a purchase.
$ W0 K- {! s* ]- K" g, N/ \! Z# Q; J9 t4 U% [( n/ y6 ~( D, d
Ottawa held its position as one of the country's most stable housing
! w' Z' Y' }- [! u: qmarkets in the third quarter, reinforced by a vibrant local economy and strong
$ f, X% T8 {9 i6 t. y/ n- Hconfidence, resulting in modest increases in average house prices. The city
! I) P2 R0 r/ T M. [centre remained a bright spot in Ottawa, with homes in this area attracting3 d l8 ?+ M: `
attention due to their convenient location and proximity to downtown3 y1 N) i# v: T# I5 s, }4 I
amenities.
, a' h- y ]$ ?9 _$ [; E
) Y( o7 V* o2 k1 S! X' d The housing market in Toronto sustained healthy activity levels+ q0 i$ G, Q$ v( J8 y9 l2 w
throughout the third quarter, as a strong economy helped to maintain demand/ Q1 L& ]* ]% W0 g+ d3 u E" @
across the city, causing average house prices to rise moderately. Toronto has Q7 C ~3 [8 ] l% c t
continued to experience modest growth in average house prices, and has been
" U/ B; X, \9 B1 p1 g/ a5 a' U1 Mdriven primarily by purchasers who are buying homes as their principle, p m2 \6 x" g6 h5 L* [
residence, rather than for investment.! D% y9 x& }: Z
, j+ X/ g+ x6 i& P
The vibrant Winnipeg housing market continued to show its strength as# U* S5 k% l: l3 S0 l
house prices rose during the third quarter. The booming local economy resulted
1 H) K8 ]- t* u* ]; ~" P. Bin a historically low unemployment rate, helping to bolster consumer0 ~8 z4 W+ S$ d; u3 {& r
confidence and Winnipeg's ranking as the city with the lowest capitalization: f( B5 R, Z2 ]1 ?! }
rate among the country's larger cities - helped to encourage buyers to enter+ G6 A3 y$ D) [
the market.
5 B3 e3 h/ w S# _
2 X9 `, ]" a, B" i4 M5 g In Regina, the market experienced a slight seasonal slowdown through
" F( _- F) Y; \July, as there were fewer purchasers in the market due to summer vacations. In
! k* V9 W0 p, vAugust, activity resumed to the busy pace previously seen in the spring. j7 w! j& ^( C! B
months, as the influx of purchasers made it more difficult to find a home due; Y4 o# L) }" |3 Z& i% S
to the shortage of available inventory.
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Activity in Saskatoon remained brisk as the market maintained its
! \! g+ Z& u) {* o: zmomentum from the busy spring sales period. The economy in Saskatoon remains9 ]0 x- j+ y( U/ v! `: A! v7 j7 A
vibrant, as employment opportunities are abundant with many businesses
5 W" K ~% F; cstruggling to make hires and having to recruit outside the province.2 U7 H2 g% W( e5 h9 G
; x0 x' ^$ L" Q
Calgary's housing market recorded blazing average house price increases
% j+ m% w. w4 R7 {in the third quarter, in all surveyed categories. The burgeoning economy, low- R. n- A# o7 R; w. R
unemployment rates and low inventory levels remained the leading factors that# l U' Z! q p: u" s9 |
pressured Calgary's house prices upwards. However, regardless of the soaring
8 K$ H9 W0 S; g3 |( Aprices that characterized the market - even during the typically slower summer: h/ `7 I; [5 L7 V# ~ p
season - it is expected that activity will become slightly more balanced, as
9 @" D) t# o9 v& ybuyers are becoming more reluctant to participate in the frenetic activity.
+ B' g+ D2 ^1 r& t) m0 G4 l4 S( ^8 ^4 b5 E
Edmonton's booming local economy continued to thrive in the third quarter; G3 y8 n9 q! \! J2 }- z
as activity in the oil sands north of the city continued to flourish. Edmonton5 v: e$ ?6 B# A% n
remained the hub of activity for those coming to work in the oil industry,
# Y7 J# w$ c5 V& {$ g' Dmaintaining tight inventory levels across the city, resulting in prices
- E. S5 M3 M% e4 c+ x# Z3 Wincreasing at record levels. However, as inventory levels continued to improve0 ~9 Y c8 c* ? s( I
in the third quarter the rate of price appreciation should moderate slightly% f. a! J) x: A9 E: \/ p
towards the end of 2006. ( N: S; v9 H( C/ Z5 D8 M M9 B
3 R& @6 A( q9 { W2 o
While Vancouver has seen a slight reprieve from the severe shortage of
8 d5 r- x- [* D: W* o" l7 i4 Q1 ginventory that had previously characterized the market, supply is still unable# d: v6 T% x8 _! F+ s' l
to meet demand, driving house prices upwards. Vancouver has a very diverse
7 L& n) m1 p1 | K* Xgroup of active buyers - from first-time home buyers to baby-boomers to8 k6 c E; M4 p3 Y ~' N1 D% {
foreign investors - all of whom fuel the demand for houses, placing added+ {& y h% c$ f$ `
pressure on tight inventory levels.
0 r! O& B1 ?0 ]+ I% o6 h, v6 b, R9 p6 r' X% E. O& @/ D
Victoria's market is vibrant and supported by strong economic
( ^8 H8 q) U9 Hfundamentals, fuelled by a booming tech sector and a migration of young people
* S# t# }$ F! z s+ m; W6 Iinto the city that has continued to support the area's house price increases;
$ O6 X! |. y2 l! s l6 _while increased inventory levels have afforded buyers more time when searching. [% E y8 |% u, @4 | u. U
for a home, helping to normalize the market's pace.
% z4 r. X i' D: W
/ e$ l- G7 F1 Q <<3 z2 ?/ G1 s) f- I! [# h" W- ^
Survey of Canadian Average House Prices in the Third Quarter 2006" L. Z! [# W( a! Z
3 j0 O' ~( A9 O. L% f& @# l
-------------------------------------------------------------------------
1 j+ ^4 I$ t- G5 U' z Detached Bungalows Standard Two Storey9 R/ `# ]! m2 f( H/ ~% m- `8 y
-------------------------------------------------------------------------
: U& c7 H# o {7 S- n3 m- p% m4 A, D# } 2006 Q3 2005 Q3 Bungalow 2006 Q3 2005 Q3
+ M4 |. y5 J! b& N% q& \2 Q/ J; `1 y Market Average Average % Change Average Average. z7 t* I8 w v4 d6 L% {
-------------------------------------------------------------------------
* U g0 |! C% j( G5 ?% W% l Halifax 186,333 173,333 7.5% 198,667 199,000
; b- J: f5 L' C& E+ N -------------------------------------------------------------------------
, F3 X5 p$ E( O( s3 Z Charlottetown 145,000 141,000 2.8% 175,000 170,000' ]# H4 S: g$ D* U
-------------------------------------------------------------------------
& T# y/ M) G) c2 H+ ^% A$ ` Moncton 135,000 127,000 6.3% 129,000 123,000
1 D9 A, } I2 f, O" k0 A& e y: ]; p -------------------------------------------------------------------------
6 l$ S/ u( ?% ` H' N: \ Saint John 141,200 142,900 -1.2% - -( O% u2 @# {: n& C1 g) y3 k
-------------------------------------------------------------------------
% |. O; y' @" [2 j3 w4 L St. John's 143,667 142,667 0.7% 200,667 202,333
5 ^# K& [0 i& B, f& t0 k6 _- b -------------------------------------------------------------------------
6 u( N& g5 I/ Y2 D2 M Atlantic 150,240 145,380 3.3% 175,833 173,583$ m3 R8 z! E5 z) J5 l) k2 `; ~
-------------------------------------------------------------------------
@* ]; N) i& T" a* @* o3 w Montreal 213,691 203,500 5.0% 321,141 316,185
% | h( x2 v5 o& e2 Z: h -------------------------------------------------------------------------2 T6 E* b/ _7 _! L
Ottawa 290,083 278,417 4.2% 285,667 273,250
* h% t: \4 Q" q4 W! v& V. W -------------------------------------------------------------------------/ Z. _$ @1 D8 }3 K d \
Toronto 373,368 355,882 4.9% 481,523 474,766
) l8 g& m6 v0 l, U# u -------------------------------------------------------------------------' U, {/ D8 c3 ?8 j
Winnipeg 181,579 159,860 13.6% 202,337 180,707" F) H& G6 H& T$ z
-------------------------------------------------------------------------. y8 v- I* q! b( ~
Saskatchewan 170,667 156,083 9.3% 182,600 166,500
/ _% ^. e& e7 o2 X -------------------------------------------------------------------------
% w0 A& u$ B- U4 F: q Calgary 395,067 252,411 56.5% 405,778 264,389+ B) w+ w3 z! {2 d
-------------------------------------------------------------------------
) h* V) \5 l( _9 _3 `8 Y3 k1 X Edmonton 286,857 194,857 47.2% 316,429 206,714
5 x) m# x7 t5 O -------------------------------------------------------------------------
, Y8 X" B) r# R _! G5 L0 w Vancouver 704,250 601,000 17.2% 794,000 697,5000 k# {. F, }. j# L
-------------------------------------------------------------------------8 N5 f6 } X) b1 S* D
Victoria 375,000 348,000 7.8% 403,000 391,000+ D- l0 q' X0 H* ]& Y/ V
-------------------------------------------------------------------------
2 p/ W: u! }9 h1 z4 J. _8 S National 300,365 258,202 16.3% 365,380 322,860
! W' p7 N& f/ j -------------------------------------------------------------------------/ f" R( v0 Q4 n* y8 M+ f" d
; ]$ k2 X4 c, S; M2 ?& A2 @$ d6 Q
-------------------------------------------------------------( o; U) d: E( h% X5 Q
Standard Condominium% R, j! h% h6 d8 s7 _
-------------------------------------------------------------
- }) B; I7 E/ c) R! B+ o- d 2-Storey 2006 Q3 2005 Q3 Condo0 P* o, s1 t6 a2 R
Market % Change Average Average % Change4 K( x; f5 V. N7 U
-------------------------------------------------------------
1 p9 @5 R; Y& X9 m1 L3 e, y Halifax -0.2% 142,000 103,000 37.9%
$ K# F% i( D) h3 t+ \5 I2 B -------------------------------------------------------------
: m- f* K* C; b" G Charlottetown 2.9% 98,000 98,000 0.0%" S3 o1 Q0 D# O$ B5 e" u- |
-------------------------------------------------------------* H8 q% B1 J! m9 J; O( d5 C
Moncton 4.9% - - N/A
' B) i6 |& h( a, k. M -------------------------------------------------------------7 G, U2 |5 }$ X0 r0 D
Saint John N/A - - N/A
( Q/ _. t, M8 `0 w8 S2 u+ n -------------------------------------------------------------
# e) O5 {! @1 i! [: e( P8 e St. John's -0.8% 146,333 145,667 0.5%: T& k- T' D1 y
-------------------------------------------------------------
( q8 l) f7 s: h Atlantic 1.3% 128,778 115,556 11.4%
9 l: w) F C: x8 P -------------------------------------------------------------( H, Q% Y; e/ Z/ F% y- _$ ^5 v
Montreal 1.6% 193,190 188,016 2.8%( l8 o: r8 d2 M% V# x! A1 N
-------------------------------------------------------------. S2 _# @- C6 b+ O i
Ottawa 4.5% 181,083 172,250 5.1%
. |/ W0 n, Z! D+ R0 Y' H! P) T -------------------------------------------------------------" [& |; h: \& @! J3 M5 V, ~
Toronto 1.4% 252,088 242,918 3.8%% ?* [: a4 V# B/ I* ]/ I7 B
-------------------------------------------------------------, L6 \( W' r/ I4 B" f& j: p
Winnipeg 12.0% 105,648 96,008 10.0%
, k8 V" E/ _. J. A- r* O: S -------------------------------------------------------------. ~) d( ~0 J) K3 r( ?4 y; N
Saskatchewan 9.7% 106,250 101,000 5.2%$ }. ~) l; O: O# w3 C
-------------------------------------------------------------
; H7 b# U8 c5 H4 c# X5 e% Z Calgary 53.5% 245,844 153,867 59.8%
2 j$ \1 I0 v/ n- f' |' l5 t7 J -------------------------------------------------------------) R& o5 ~2 ?$ x# f$ O- k
Edmonton 53.1% 200,433 131,500 52.4%
! g( h9 h F# \" H2 q -------------------------------------------------------------
( Q- y4 W4 O5 {! [ Vancouver 13.8% 366,250 323,250 13.3%
1 S/ r- p3 Z6 P -------------------------------------------------------------- L) W* a$ Y; l" |8 V
Victoria 3.1% 229,000 220,000 4.1%
' g) [/ I; I- A5 O7 D) V' @2 Y -------------------------------------------------------------
9 G& {, u* G5 l, [( E0 L+ s National 13.2% 211,562 185,296 14.2%
Q" e& Y- F# S -------------------------------------------------------------
8 m' {/ S4 j3 M+ ~2 f4 v >>
; N; F8 g9 K b. @/ N9 {7 R$ Y* Q2 u: \: |, k& M
Average house prices are based on an average of all sub-markets examined1 _' P, \* s4 _1 k4 B
in the area, except for the smaller markets of Charlottetown, Moncton, Saint
3 h& j' Z9 r6 D, }- S; hJohn and Victoria.9 L& {9 G! r" ^5 Q; P/ g; E
7 K5 U5 T- `; T4 @# c: l7 }/ [ The Royal LePage Survey of Canadian House Prices is the largest, most4 Y! E: @6 d& Y! R, ]; j
comprehensive study of its kind in Canada, with information on seven types of
: ^: T: k+ e; S0 F: Ghousing in over 250 neighbourhoods from coast to coast. This release
0 I0 j9 X3 M6 nreferences an abbreviated version of the survey, which highlights house price
9 ~3 @2 Q: M* y2 Ytrends for the three most common types of housing in Canada in 80 communities
0 q7 L. E% ?8 b0 c' ^across the country. A complete database of past and present surveys is
& ] u8 l6 m% \" {* r& R& d' e" ^available on the Royal LePage Web site at www.royallepage.ca, and current
$ w, A1 a& O9 |# Afigures will be updated following the end of the third quarter. A printable
( u. ^. I' [. b- ]. D7 [' ]4 yversion of the third quarter 2006 survey will be available online on
. L# X7 L2 J. p3 v% X% @November 15, 2006." a# |7 r$ n3 T# R6 {
Housing values in the Royal LePage Survey are Royal LePage opinions of
; ?4 E0 I ]; b& s) Sfair market value in each location, based on local data and market knowledge( a) @/ r( } Z8 S4 {
provided by Royal LePage residential real estate experts. Historical data is
' _& L* r9 w6 h) V. {) r8 _available for some areas back to the early 1970s. |
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