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New home prices weaken in Canada
) s0 `$ F6 I/ @ n+ ~Canwest News Service
$ V0 y5 U- m" T5 P3 }$ [5 YPublished: 7:48 am
5 g0 v; c- J4 f; uOTTAWA - 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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5 ~1 K! H1 t! ~/ @( I, 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.
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% J* ^" s, u0 x- T; F8 i x"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.7 ]+ L" ?1 |3 S# X* B
: i$ ]( M6 |" Y5 }& H* }& H( CIn 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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: G# `, D, A/ F! Q+ G: S"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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5 |- h" M! o& o5 O$ I2 ^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.; L8 c9 F3 f: X$ U: G
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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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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.! R# N6 K4 x4 b2 N, b5 i
% v2 j) l0 y3 A* b; e# mPrices 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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. M! U( O& `8 C$ fIn 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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: P+ ^) W8 q# {' A N, c/ h2 ^* J% bPrices in St. John's rose 16.3 per cent in April, up from the year-over-year increase of 12 per cent in March./ V9 `, T% | u9 Z3 Y9 v1 R9 _
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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. L3 O; Q' r& R7 ^3 A5 B
; p' H3 \" q' y) e' c5 L"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.. \+ R; g/ r; w ?6 I
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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."3 @: R3 _! Z$ f2 \2 P/ q3 L
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© Canwest News Service 2008 |
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