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New home prices weaken in Canada l" e0 g9 V: i5 |& |6 A1 a
Canwest News Service
6 f0 y+ Y8 C' W6 lPublished: 7:48 am
# R+ X) R+ N! W, |/ T0 pOTTAWA - 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.4 W W6 p4 I" I# M4 Y! M5 H8 c. n$ D
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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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3 N* E% v! O n9 i: F! _In contrast to strong markets in Saskatchewan and parts of Atlantic Canada, home prices in oil-rich Alberta showed more signs of cooling. 5 S9 K8 B3 q7 i/ m8 t! h- g$ v& D
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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."5 p/ n- _- o! T; W9 x
6 z7 |" ]6 m/ H+ i! z* O! XPrices 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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! z$ D) A2 K5 g, V* kIn Edmonton, the year-on-year rate slowed to 8.1 per cent - the ninth straight month of decelerated growth. # u( q; A. {! d0 o& p, @
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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.; m! _0 n0 P5 D. R# 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.
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$ q3 C" q/ Y( pIn 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 W& Y: b6 C) E2 s) }2 Y/ f5 t3 gPrices in St. John's rose 16.3 per cent in April, up from the year-over-year increase of 12 per cent in March.2 o- z* R+ ^( I! ]
! ~4 i+ v9 `4 K: F! m, nNova 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.! E) V$ W! J+ q' g! F+ m/ M
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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.
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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."3 _$ r7 i3 U e+ ^ V
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© Canwest News Service 2008 |
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