Average new home prices weaken

Prices for new homes in Canada rose by 5.2% in April from a year earlier, the slowest pace in more than 2½ years as a weakening Alberta market continued to pull down the national average, Statistics Canada said yesterday. April's rate was down from a 6.1% year-on-year increase in March, the federal agency said. On a monthly basis, prices were unchanged in April from March. "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%,"it said. In contrast to strong markets in Saskatchewan and parts of Atlantic Canada, home prices in oil-rich Alberta showed more signs of cooling. "Edmonton and Calgary continued to experience slow market conditions," StatsCan said. "Competition among builders has resulted in lower prices being offered to prospective homebuyers."

(Source: National Post)