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New home prices weaken in Canada" M# R( Y* t" B0 X% A' ]2 u; c
Canwest News Service# S, b9 d( U6 f
Published: 7:48 am
3 v" \5 x" Q) FOTTAWA - 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.. ~# n; ?4 z8 G
- ? O3 H) R {3 f4 TApril'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.. T1 r" W1 k1 d' Q+ r8 G' p
# R3 N6 {% x3 X. Y2 }5 ?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." A3 ?. C" {0 P5 w, R1 Z: e2 \
; ]2 L1 q* e) pPrices 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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In Edmonton, the year-on-year rate slowed to 8.1 per cent - the ninth straight month of decelerated growth. 1 K# J; L/ w/ d! b v: S& M) E
- Q! P0 Z& \9 e2 M3 w4 vMeanwhile, 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.- S: C0 C" l$ G5 O' T/ I
( {/ b/ E% O( h' oIn Newfoundland and Labrador "a strengthening economy, coupled with increased material and labour costs, has contributed to record increases," Statistics Canada said.
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0 C& `- S6 k0 MPrices in St. John's rose 16.3 per cent in April, up from the year-over-year increase of 12 per cent in March.4 _& C5 f1 F d
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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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# S F( R! g( w"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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: x' g& R0 |; S, f2 e"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."8 d5 G+ C( B/ W6 a8 e
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6 l5 A, k4 M: n H2 `7 x© Canwest News Service 2008 |
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