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New home prices weaken in Canada
! A% R4 D! g, Q# i/ y+ \2 ?Canwest News Service. z( m- I% Y7 Z6 b" z$ y+ ?
Published: 7:48 am$ @# s0 J9 n8 B. h9 U w
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.4 c' K% l+ z8 j2 R
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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.; R# n2 Z# X+ i: b
' ^) Z+ l7 i) o* E" {0 _+ Z" S8 G"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. / ]+ S7 ^% u6 A
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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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5 n, S3 h0 Y& o5 i& G8 YPrices 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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* ?, e; D0 d. n( JIn Edmonton, the year-on-year rate slowed to 8.1 per cent - the ninth straight month of decelerated growth.
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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.; Z; c& g Q: u% D, D
8 y" c9 U6 r& O( n' T; \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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In Newfoundland and Labrador "a strengthening economy, coupled with increased material and labour costs, has contributed to record increases," Statistics Canada said.: ^! A6 G# i% J& t+ p5 i& T& ?
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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.$ }, a3 m. j2 ?. F6 Y3 D9 V( J
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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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2 e5 C9 u" p# N/ g. a0 A: ?9 M2 Z"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., w D# v; R) t5 l7 }' w' Q
- [* }- i# A& X) L* o, n3 D, K- L"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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© Canwest News Service 2008 |
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