Canadian new housing prices soften

OTTAWA, Aug. 11 (UPI) -- The prices for new housing in Canada slowed to a six-year low in June to a 3.5 percent increase as new housing starts also dipped, federal agencies said Monday.

Statistics Canada said June's national average prices dipped to a 3.5 percent increase in June from a rise of 4.1 percent in May, the slowest rate of growth since March 2002 when year-over-year prices increased by 3.4 percent.

"On a monthly basis, prices edged up 0.1 percent between May and June," the agency said.

Homebuyers in Regina, Saskatchewan, experienced the largest gains in new home prices, with prices up by 28.5 percent from June 2007, attributed to labor shortages and increased costs of materials, StatsCan said.

Meanwhile, the Canada Mortgage and Housing Corp. reported in July the seasonally adjusted annual rate of housing starts was down 14.8 percent, or 186,500 units, down from 215,900 units in June, further suggesting an economic slowdown in the sector.