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New home prices weaken in Canada
" G7 \3 l; _5 A: e$ ~4 S/ R6 yCanwest News Service6 I$ Y D; J( t& w0 {( K
Published: 7:48 am
/ v: O) ~* Q- u: G$ v/ ZOTTAWA - 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 R; g: V5 b% J" {/ UApril'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.9 c# N' m j) L7 M T9 t4 |/ q* [
2 a0 A' P# W+ F: _"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.( h/ W- g4 r0 {) T
3 `& R }# W/ C# }In contrast to strong markets in Saskatchewan and parts of Atlantic Canada, home prices in oil-rich Alberta showed more signs of cooling.
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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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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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" ~2 l# E; Q, P/ \9 a; K9 G3 cIn 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.+ [: H& ?. Z8 b$ T! G2 O
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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.- K: V+ e- o, d1 g. R' M
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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.2 K- V- U' h% u, j+ p
% {1 |0 J$ M9 S) z1 i# fPrices in St. John's rose 16.3 per cent in April, up from the year-over-year increase of 12 per cent in March.. B: H e3 e7 I; X9 Z* ^- I
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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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; ]/ w' `, ~; K% o! m5 j5 S% Z"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.+ B) f; G0 N0 B1 G
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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."5 `9 ?% C; y1 L! \ v0 o: q
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© Canwest News Service 2008 |
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