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New home prices weaken in Canada
* a, j" l$ f# p5 j. [Canwest News Service# v2 i6 b9 H6 D9 p1 o3 H. |8 O
Published: 7:48 am
( r6 ?1 v) R4 o) y% J! mOTTAWA - 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.1 a7 n) z: |& J! p1 n
- V7 \8 ^( U( J0 f' \3 y& w T+ wApril'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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9 l5 c$ F1 q* M/ c7 ]# {7 e"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. T s2 L1 G, z. }4 w( V( a) A
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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. 4 e7 x% m& g" L
8 ~" i/ m! y$ M9 P+ y) `9 s8 B"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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: o0 I2 {8 N- c" o, IPrices 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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In Edmonton, the year-on-year rate slowed to 8.1 per cent - the ninth straight month of decelerated growth.
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[- F2 s/ |: aMeanwhile, 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.+ o3 G# Y1 o0 ?7 w0 e1 j; d
2 X. h4 d/ U6 P3 B% WPrices 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.# ]9 ?" n2 s0 L3 g
( i3 ~% m" v6 @) T# J) E$ z. @" \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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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.
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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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) o9 \# C0 H0 b7 h1 V"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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$ M1 u, r% b H3 n; B' `1 Y© Canwest News Service 2008 |
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