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New home prices weaken in Canada
$ B% h; c+ A" R' _Canwest News Service: J" v' R" j% d+ m0 j
Published: 7:48 am
, M/ Y5 Q% B8 E. S5 c) l7 g" _$ vOTTAWA - 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% N4 q) W3 U, x T, o L
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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.. g. z% F2 T( y) ?8 ?/ P
% O' X1 u8 N* \. b; e6 r$ @. \! U"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.8 m5 y( |& v2 R$ D* n
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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.
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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.5 O2 f9 u& f" I* Y1 I4 L
9 w) V7 ^4 _# y/ D1 eIn Edmonton, the year-on-year rate slowed to 8.1 per cent - the ninth straight month of decelerated growth.
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9 i0 E) y1 Y5 }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.0 p: Z- g5 O6 K/ S/ |# r
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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.( b5 P+ r; z4 H* K2 f/ N5 T# s
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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.- m P+ p' p/ f3 b
6 I9 _9 |- Q) L$ D5 }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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4 j( B9 H6 U5 M" _/ HNova 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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9 P8 A6 A1 @ r/ c0 U% E"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.5 s& a! q1 _3 ?, @' Z8 f
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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."$ P, t8 B3 K% G
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© Canwest News Service 2008 |
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