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New home prices weaken in Canada
, F% g {# C2 _0 c) `- gCanwest News Service
) h- U" |; R; R4 A2 R IPublished: 7:48 am5 G. ~+ E3 k( F2 F4 [; ?+ L5 i
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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2 A3 N% S ]8 J4 ?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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5 ^* J s1 E; J: z* Y6 B( j. Z"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.! a) w) O# @" \- M. |" C+ M- e& i- h
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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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, p+ S- K' ^, d7 G, F"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.' W- t7 W$ i' ~
K- w* p" F2 k5 i5 S/ a1 t% b! CIn Edmonton, the year-on-year rate slowed to 8.1 per cent - the ninth straight month of decelerated growth. + s" t6 x& z8 v
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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. r. R" H7 I# k" U5 T
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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.& K( ?9 J3 \/ n! V ^
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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.
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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.$ k% f4 @3 q" V U0 R7 Y# c/ r
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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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8 y' @: ]& U8 _6 O"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.# D5 L( n9 _4 n+ ?" T" X5 r, @
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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."" M% S+ A% R+ F8 z# O; U6 d
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© Canwest News Service 2008 |
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