Growth in new housing prices slowed for a second straight month from a year ago in March, continuing a downward trend that started in September 2006, Statistics Canada reported today.

Contractors’ selling prices rose 6.1% between March 2007 and March 2008, a slightly slower pace than the 6.2% year-over-year increase posted in February.

Prices rose 0.2% between February and March.

Prices rose at the fastest pace in Saskatoon for the 11th straight month, with a year-over-year price increase of 46.2%, down from the record-setting pace of 58.3 in February.

Saskatoon housing prices rose 2.1% from February.

In Regina, the year-over-year increase was 27.8% in March, down marginally from the annual growth rate of 28.6% recorded in February. Regina’s new housing prices rose 1.7% between February and March.

The markets continued to slow in Edmonton and Calgary, where builders in both cities reported lowering prices to generate interest and stimulate sales.

The 12-month growth rate in Edmonton slowed to 13.5% in March, the eighth straight month of growth deceleration. New housing prices were down 1.1% in Edmonton, where they dropped for a third straight month.

Prices rose 5.3% in Calgary between March 2007 and March 2008.

A strengthening economy, coupled with increased material and labour costs, contributed to record increases in Nova Scotia.

Prices rose 12.8% in Halifax, up from the year-over-year increase of 11.4% in February.