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New home prices weaken in Canada
/ k9 ]. z( m8 D$ zCanwest News Service
6 g/ K* K3 o! M6 O, nPublished: 7:48 am
+ ^* n4 n! ^' q8 w. A$ I. h, S4 O: uOTTAWA - 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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9 D: i7 ?/ y1 r9 b1 IApril'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.
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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. 9 ?( Z; h, a. H; \1 w/ i* l) d
& k2 C1 H9 D0 ^, ^ ~; i- r"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."" k' p( s" g" D9 M: j2 g
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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.
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, f# w4 I2 {$ K. @: k O+ rIn Edmonton, the year-on-year rate slowed to 8.1 per cent - the ninth straight month of decelerated growth. * ?$ |7 A# U z& j7 N# G+ P3 u1 W3 G7 D( w7 S
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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.
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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: b0 N. N" U$ ~5 L4 `
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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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9 \2 ~" j# z3 n6 OPrices in St. John's rose 16.3 per cent in April, up from the year-over-year increase of 12 per cent in March., W" C+ r g) S! P0 g' s6 a. ]; 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.$ z. S; s% D& w
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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.( ~4 L! R; q2 F% e, o7 x
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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."
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& s0 e( q# e f0 j2 K6 S. E/ _© Canwest News Service 2008 |
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