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

"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 per cent," the federal agency 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 per cent in April. New house prices in Regina increased 7.1 per cent between March and April and 34 per cent 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 per cent and 5.3 per cent, respectively.

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

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

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