Canada new home market cools further in July

Thu Sep 11, 2008 10:37am EDT
 
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OTTAWA (Reuters) - Price increases for new homes in Canada eased in July for the sixth straight month, advancing just 0.1 percent and adding to evidence of a cooling housing market, Statistics Canada data showed on Thursday.

Prices increased 2.7 percent year-on-year, down from 3.5 percent in June as the once overheated real estate market in Western Canada softened.

Analysts had on average forecast a monthly gain of 0.1 percent

New homes in the city of Regina, Saskatchewan led the price gains with a monthly hike of 2.6 percent for a year-on-year increase of 29.6 percent, down from a record 34 percent gain in April. Saskatoon also continued to see double-digit price growth at 13.1 percent annually.

However, oil boom cities of Calgary and Edmonton, Alberta posted price declines in both the month and the year.

* Statistics Canada report here

(Reporting by Louise Egan; Editing by Scott Anderson)