But modest increase reflects a sector ‘coming off the boil’
Province
OTTAWA –Prices for new homes in B.C. rose by about five per cent in April from a year earlier — almost on par with the national average, Statistics Canada says.
Vancouver saw year-over-year prices in April climb 5.4 per cent, StatsCan said yesterday. Vancouver prices rose by 0.1 per cent between March and April of this year, StatsCan said.
In Victoria, new-home prices increased by 1.9 per cent between April and the same month in 2007.
Victoria‘s prices fell by 0.3 per cent between March and April.
Nationally, the year-over-year increase of 5.2 per cent was the slowest pace in more than 21/2 years as a weakening Alberta market dragged down the national average, StatsCan said.
April’s rate was down from a year-over-year increase of 6.1 per cent in 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 per cent,” it said.
In contrast to strong markets in Saskatchewan and parts of Atlantic Canada, home prices in 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.” Prices in Calgary edged up 2.5 per cent in April from a year earlier, compared with a 5.3 per cent year-over-year increase in March.
Meanwhile, Saskatchewan 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.
In Newfoundland, “a strengthening economy, coupled with increased material and labour costs, has contributed to record increases.” Prices in St. John’s rose 16.3 per cent in April.
“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.
“Similar behaviour has also been observed in the price of existing homes . . . The Canadian housing sector remains in reasonable shape and a U.S.-style correction in home prices remains highly unlikely.”
© The Vancouver Province 2008
