New housing prices increased at their slowest pace in almost six years in May, says a new Statistics Canada report.
Nationally, contractors' selling prices jumped 4.1 per cent between May 2007 and 2008. The pace was a slowdown from April, which saw a year-over-year increase of 5.2 per cent.
The May figures continue a deceleration that started in September 2006 -- due mainly to softening markets in B.C. and Alberta.
Overall, the May increase was the slowest rate of growth since July 2002 -- when year-over-year prices increased by only 4 per cent.
On a monthly basis, prices were unchanged between April and May, says the report.
Meanwhile, in Saskatchewan, homebuyers continued to face the largest increases in prices.
Regina's year-over-year price increase was 30.4 per cent -- down from a record high of 34 per cent in April.
Builders cite higher labour and material costs for the rise in prices, says the report.
In Saskatoon, price increases slowed to a 13-month low of 30.2 per cent in May. The decline was the third in a row for the city, which had a record increase of 58.3 per cent in February.
Here's a breakdown of other select cities across Canada:
- In Winnipeg, contractors' prices jumped 16.1 per cent in May, compared to a year earlier.
- In Edmonton, prices were up 3.3 per cent on a year-over-year basis while Calgary saw only 0.6 per cent growth.
- In Vancouver, prices increased only 2.7 per cent between May 2007 and May 2008. In Victoria, prices were unchanged during the same time period.
- In the East, St. John's saw prices 18.8 per cent higher than in May 2007.
- Prices in Montreal were 5.7 per cent higher year-over-year while Toronto reflected the national average with 4.1 per cent.
Earlier this week, a report by Canada Mortgage and Housing Corp. showed the annual rate of housing starts dropped in June.
Still, the level of activity remained at high levels, above the projections for 2008.
Total housing starts in June were 217,800, down from 227,700 units in May.
