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New home prices weaken in Canada9 c$ i3 ?! Q% ], @9 y
Canwest News Service3 H" h0 z r p! h$ Q3 t6 G
Published: 7:48 am
9 {/ P ?+ b( FOTTAWA - 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.5 S5 l: U6 p2 b) m- b' Y" T+ M
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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.
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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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; ^( Z. U2 |7 a$ ]! W7 O3 M OIn contrast to strong markets in Saskatchewan and parts of Atlantic Canada, home prices in oil-rich Alberta showed more signs of cooling. 7 x, Z6 W: x. ]- V% m, H2 k
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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 H) e9 a4 v8 ~4 ~& B0 B6 c, R: c/ z
; r+ F5 X9 b7 W9 T# {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.: Q4 W9 r( E# U1 @$ P- Z
' J3 c3 Q9 A1 T( z" T. d6 W- w3 \3 p. v% P( eIn Edmonton, the year-on-year rate slowed to 8.1 per cent - the ninth straight month of decelerated growth.
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4 r Z% Y2 c- }( t- D; mMeanwhile, 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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* J# [# P' y' L |9 `0 g& B1 KPrices 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.& b$ x7 N& m8 o5 z7 g
- H' W1 y* K8 b: Z6 G' P( W3 xIn 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.
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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.2 `+ Y* ]+ m/ j* ? q- c* T; H
* g& x4 |9 z; F9 i8 u7 T& s: E) L( g1 p"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.' l/ r, C0 s% a1 [
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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."% Y) q+ u+ q% |. y1 j- M/ @
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. m$ i6 L8 r5 N) V m© Canwest News Service 2008 |
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