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New home prices weaken in Canada
' _% f- x5 M) n2 `* ?Canwest News Service( [7 C& F6 c3 k& u
Published: 7:48 am" e* `/ c7 n' [; P) @- D" ` r5 S
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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In contrast to strong markets in Saskatchewan and parts of Atlantic Canada, home prices in oil-rich Alberta showed more signs of cooling. ( `9 O( v5 D7 F
4 @1 p$ a8 O a! P"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."7 L+ P$ |! Y v3 y' j5 u. \1 u
" {% U \- O6 v/ p# PPrices 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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) ~8 V0 h6 n, ?& IIn Edmonton, the year-on-year rate slowed to 8.1 per cent - the ninth straight month of decelerated growth.
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9 N& K# @# G c8 zMeanwhile, 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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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.+ o i2 Q, i6 _+ ?; r
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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.; w4 z. a. F% w3 m
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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.( X/ [4 s# S% i/ j9 Y6 G
Q1 |% R2 M9 l! A4 } ]1 WNova 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.& _/ |" i# L$ ?" @( N2 V& Y# K8 P
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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.9 q$ F1 @0 m( T2 k
6 B* x, ^( I9 J+ X( p"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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8 C( |/ T1 s5 I: y. |. C% y© Canwest News Service 2008 |
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