Contractors’ selling prices for new homes increased 5.2% between April 2007 and this April, its slowest rate of increase in more than two years, Statistics Canada said today.

“This was the third consecutive month in which the increase has decelerated, and the slowest rate of growth since September 2005, when year-over-year prices rose by 4.9%,” the government said in its new housing price index report.

In monthly comparisons, prices did not change between March and April.

Saskatoon led the country for the 12th consecutive month with year-over-year increases of 43.7% in April. New house prices in Regina increased 7.1% between March and April and 34% in yearly comparisons owing to a strong demand for new housing.

The pace of growth continued to decelerate in Edmonton and Calgary, with year-over-year increases slowing to 8.1% and 5.3%, respectively.

Rising material and labour costs helped drive up home prices in Newfoundland and Labrador, with record yearly increases of 16.3%. New home prices in Halifax jumped 11.3% on a 12-month basis, a decline from 12.8% recorded in March.

New home prices in Vancouver increased 5.4% and 1.9% in Victoria between April 2007 and April this year. In Montreal, the growth rate registered 4.3%.

Prices in Windsor, Ont., continued to fall for the 19th straight month, declining 0.2% in year-over-year comparisons.