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Canadian new home prices flat for 2nd straight month in April

New home prices in Canada remained flat for the second straight month in April as 19 of the 27 surveyed cities reported flat or declining prices, Statistics Canada said.

Builders in Toronto reported a 0.5% decline in April, the fourth straight monthly drop, and attributed the decline to unfavorable market conditions and lower negotiated selling prices.

New home prices in Vancouver, British Columbia, remained unchanged since January.

Eight cities posted gains in April, with Windsor, Ontario, and Sherbrooke, Quebec, leading the way. Builders in both surveyed cities attributed the gains to higher construction costs and new phases of land development.

Over a 12-month period, new home prices rose 1.6% in April with Vancouver, Ottawa and London, Ontario, recording the largest gains at 7.1%, 5.8% and 5.5%, respectively. New home prices in Saskatoon, Saskatchewan, decreased by 1.5%, the largest decline among six surveyed metropolitan areas reporting decreases.