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New home prices weaken in Canada$ z3 I* b# n' m7 b; a
Canwest News Service
* }' A( z' ~( kPublished: 7:48 am. E7 F! l& P/ ~3 L" c; c
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.% z5 @3 ]4 S* e, _
( N" L- O, p6 V1 cApril'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.
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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. 5 c9 v- `) |) ^4 Z$ \
% F7 M; X, T4 c$ V9 ]8 m2 \1 V4 D; N"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."2 o; Y. A5 I: I& D; f2 K
- v; y# D; l) i7 R/ b8 a+ Q" q; C. `# {. [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.5 ~* I7 T9 x i
. _. k! G W' R, R8 b9 ~$ | nIn Edmonton, the year-on-year rate slowed to 8.1 per cent - the ninth straight month of decelerated growth.
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: I8 d7 J( g0 d zMeanwhile, 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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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.6 C1 M) O4 x( k) ~& Q
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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.+ `# y2 s2 v. @; p- N
' u# [9 h. \% h) b9 y4 b+ o. ^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.* U& y' ]) X+ N) W( x$ ^3 Q
2 _5 ^+ ]& l7 p, 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.$ ~- i% T' N5 O+ `
% F0 _ E' {! W6 j"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."9 E [0 T- e( o( B, j$ T# E
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© Canwest News Service 2008 |
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