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New home prices weaken in Canada* D- o" p# V% ~; A' i
Canwest News Service# ?. [8 t% E9 i7 y, u
Published: 7:48 am; m7 D& c8 w# A9 K7 y
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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6 f' T( J2 x3 h7 f5 I+ p qApril'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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) Z) |" c, g2 A7 C7 c"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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1 n& U0 n. j* c `1 Q0 QIn contrast to strong markets in Saskatchewan and parts of Atlantic Canada, home prices in oil-rich Alberta showed more signs of cooling. 2 u" R8 y2 Q9 l }5 A$ t5 B) ^, ]2 g
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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.: l" }1 ~0 B9 R. g
1 {0 Z$ p: ~+ s: W3 CIn Edmonton, the year-on-year rate slowed to 8.1 per cent - the ninth straight month of decelerated growth. 4 R6 n g2 l. H# O6 v( 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.
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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.
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# \1 ?$ x8 G) N' g: u+ Y" [In Newfoundland and Labrador "a strengthening economy, coupled with increased material and labour costs, has contributed to record increases," Statistics Canada said.; R2 o7 p% r3 i: e
2 c8 g6 a: t7 X$ B2 t$ 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.
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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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"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# ?9 j- e3 T! Z$ Z
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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."1 {4 {& w. R1 R
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% d7 h# x. S3 F6 n; z© Canwest News Service 2008 |
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