New housing prices continue slowdown

OTTAWA (CP) - The increase in new housing prices slowed for the eighth straight month, with contractors' selling prices increasing 7.8 per cent from June 2006 after an 8.6 per cent year-over-year rise in May. Monthly, prices rose 0.7 over May. Saskatoon's new-housing market continued its strong growth, setting another record year-over-year increase, at 48.4 per cent.

Regina also had a hot housing market, posting a record increase of 22.5 per cent over June 2006.

New-housing price inflation continued to fall in Alberta as prices in Edmonton receded to a 31.9 per cent increase, down from a high of 42.8 in November 2006.

At 14.7 per cent, Calgary's year-over-year increase continued to moderate from historic highs recorded in 2006.

At -2.3 per cent, Windsor, Ont., remained the only city where new housing prices declined - due largely, say homebuilders, to competitive pricing in a weak market.

Saskatoon had the highest monthly increase, at 8.8 per cent, followed by Winnipeg (5.2) and Regina (1.9).

© The Canadian Press, 2007