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New home prices weaken in Canada4 i6 [# {3 O+ I2 z/ o' d6 _
Canwest News Service1 l, Z$ {+ _3 W! Y3 W
Published: 7:48 am2 M0 o! U I A2 \3 Q" a
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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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.
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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. ]. f( |# V& \
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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. 1 B, v N* Z7 f+ K. @ R( M& p
/ l9 s% J, K+ d4 E" |9 }3 y"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."! S t0 @4 \1 z* t
9 N" d& P' ?- `3 g v \$ N6 Z& [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.
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" I' q5 m0 ~) u$ eIn Edmonton, the year-on-year rate slowed to 8.1 per cent - the ninth straight month of decelerated growth.
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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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/ m" `& h' f# C6 b7 p. x: HPrices 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.
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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.- Y ]6 e& J) }1 ?4 @
1 g; {) k) @" _$ j6 M2 [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.* w: c& @. ~. v% f8 `7 U
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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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0 b. B3 J3 @" M' _$ \"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.9 B* _! g4 v, c# f P, a K" e
" O1 D; \2 u2 W9 B"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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© Canwest News Service 2008 |
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