OTTAWA -- Canadian new housing prices rose at a slower pace in March than in February as a slowing market in Alberta was only partially offset by a real estate boom in other western provinces, Statistics Canada said on Monday.
The price of new homes edged up 0.2% in the month compared with a 0.3% rise in February, in line with market expectations. Year-over-year price growth slowed to 6.1% from 6.2% in February.
"This deceleration continues a downward trend that started in September 2006 due mainly to the softening market in Alberta," the state-run agency said.
Although it is cooling down, Canada's housing market has avoided the dramatic downturn affecting the U.S. economy. The milder price growth helps the Bank of Canada keep inflation on target as it plans to reduce interest rates again on June 10.
Builders in the Albertan cities of Calgary and Edmonton reported lowering their prices to attract buyers in a market that has slowed from frenzied levels seen earlier amid the region's oil industry expansion.
However, that weakness was offset by sizzling demand for housing in Saskatoon, Regina and Winnipeg.
The price of new homes edged up 0.2% in the month compared with a 0.3% rise in February, in line with market expectations. Year-over-year price growth slowed to 6.1% from 6.2% in February.
"This deceleration continues a downward trend that started in September 2006 due mainly to the softening market in Alberta," the state-run agency said.
Although it is cooling down, Canada's housing market has avoided the dramatic downturn affecting the U.S. economy. The milder price growth helps the Bank of Canada keep inflation on target as it plans to reduce interest rates again on June 10.
Builders in the Albertan cities of Calgary and Edmonton reported lowering their prices to attract buyers in a market that has slowed from frenzied levels seen earlier amid the region's oil industry expansion.
However, that weakness was offset by sizzling demand for housing in Saskatoon, Regina and Winnipeg.
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