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New home prices weaken in Canada9 Y. D, {7 `4 W# a
Canwest News Service
# f' S/ P9 U: ]% cPublished: 7:48 am. a# o, t8 w R( }& N4 M3 d
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.
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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.
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! {$ n( \- `+ Q0 s- s"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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$ R. u$ c- @, \! K* A) T. dIn contrast to strong markets in Saskatchewan and parts of Atlantic Canada, home prices in oil-rich Alberta showed more signs of cooling. $ l) G3 f9 x l4 |7 V
4 i. F" l) I: `+ P* M) a2 @% Z9 Y"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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# A3 r5 @2 K/ ~) DPrices 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. e( u) v! T' r' T! D+ g$ N/ `
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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., y& c, T4 G4 G/ B' n
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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.' A$ L" x; w; K4 ^5 O
6 E0 w5 h* M# }9 ~! CIn Newfoundland and Labrador "a strengthening economy, coupled with increased material and labour costs, has contributed to record increases," Statistics Canada said.# A7 `# k3 R) O# h0 \; X
$ f2 b' A5 ~- l9 @* jPrices in St. John's rose 16.3 per cent in April, up from the year-over-year increase of 12 per cent in March.7 E- [; q2 M3 @4 b0 X+ e( X
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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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- Q1 ?. X: O% ~* G1 A2 O! S"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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* d) F* }# z1 P& q9 w% 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."5 }& F/ R3 b% ?. W& \' U# w: v4 T
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© Canwest News Service 2008 |
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