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New home prices weaken in Canada9 i- w) r) E' v* A/ a$ i; j
Canwest News Service
! T# O% @2 k @5 O3 sPublished: 7:48 am
8 K0 R9 y3 R0 H% {9 }8 A0 bOTTAWA - 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.2 k3 [/ q4 N- m5 r9 G3 n
" ?0 K! b; \& P5 |% O9 r- M2 Q! B/ F' MApril'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 i: F% t/ P8 u$ {( m$ o
; h+ l T' b# K0 u5 K3 s: s4 v"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.
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/ t2 O- L8 a7 r; {( D"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."; M# w# e# B3 _
, {( Z) M( z" R# KPrices 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.! N+ `- Q1 q% I7 g* {, B
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In Edmonton, the year-on-year rate slowed to 8.1 per cent - the ninth straight month of decelerated growth. , ~% u( J% o" |) G. |$ k5 g
7 t' m& D6 p& |- cMeanwhile, 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.1 t6 B4 j& j3 R( r* b
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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.) s- y ]6 }% n* c9 x/ a$ [# P
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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.
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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.) [( ~+ _, U: w4 |
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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.0 z* d6 |" [3 @' b4 h0 Y9 I
3 V5 l7 k8 w+ @$ o2 V$ j"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.- |! j2 H# ^2 z# S
) x. J1 D1 X& V6 @"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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