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New home prices weaken in Canada: c9 \7 T2 `& q8 z [. S
Canwest News Service- ?! A* `" R. m0 v: I/ k
Published: 7:48 am% Z) d" G. O& V& w2 f7 [; @
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.: C( G- n, o3 i) H: [* f
9 A' v C* a1 G5 ^6 E9 NApril'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.- O7 j* L7 m# R; {
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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. % \/ f* R3 s, S
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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."7 a) R8 y6 Z& F }# j- G# T
/ J& ]* F; W. R. I2 ^9 A* fPrices 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.6 i/ t3 ?9 o8 z* s. @9 J n Q
' N& {2 @% J0 S% a8 A. ?! K# FIn Edmonton, the year-on-year rate slowed to 8.1 per cent - the ninth straight month of decelerated growth. ! {7 h5 E* r* r, j) T& l# C
% m: C: ?+ s3 K2 eMeanwhile, 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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3 K* `8 Y- I/ WPrices 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.7 |# D/ X) I* P* q
% |# z! ^1 \5 ^" o( y6 ?. V( K! ]1 RPrices 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! d* L1 D; |# b% w
2 a6 Y: F6 u' c; oNova 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.9 T, j( Y6 ^; c
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"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.
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9 @' I7 F I1 Q& i* t"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.": I0 ]# v* ~1 y$ W. g
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) X6 t# s5 ^9 v3 g9 F© Canwest News Service 2008 |
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