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New home prices weaken in Canada
2 k6 g" ]9 k; {/ \+ h+ ?0 WCanwest News Service/ F2 }9 J( q# }+ T8 h
Published: 7:48 am, D! R% Z/ |1 r. d2 L. a# l
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.
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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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" o V7 B4 L) ]* h v! X2 QIn contrast to strong markets in Saskatchewan and parts of Atlantic Canada, home prices in oil-rich Alberta showed more signs of cooling. # q5 b( P' J# _! e5 \% o& ]9 P
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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."% ]' x2 v+ D- v; b8 R
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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.7 l3 }5 {6 M4 U) H! Q' }1 c
5 L1 {- t F: F8 m3 ^( U, O3 cIn 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.1 K4 h7 c5 `( @5 t1 L- ^7 r; ~. s
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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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In Newfoundland and Labrador "a strengthening economy, coupled with increased material and labour costs, has contributed to record increases," Statistics Canada said. `- n" R' X0 F- @; @$ ]
4 g$ r$ b0 }9 r7 rPrices 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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# V6 J) ~# _! {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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1 L! g1 R3 ^/ }5 o% }"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.& `; W1 B5 x+ G( E: G
$ `+ d- y! P$ H! 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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2 ~8 F5 `1 o' k8 J3 W6 {/ d© Canwest News Service 2008 |
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