Derrick Penner
Sun
The nationwide 5.3 per cent drop in the value of building permits was much worse than the one per cent monthly drop markets had been expecting, and the biggest monthly change since November of last year. Photograph by : Peter Battistoni/Vancouver Sun files
VANCOUVER — British Columbia was one of six provinces to see a decline in the value of building permits issued in June, Statistics Canada reported Thursday.
Builders took out just over $1 billion in permits in June, a 6.1-per-cent drop from the $1.13 billion taken out in May, with the decrease driven by a substantial drop in non-residential applications.
The value of building permits across Canada plunged 5.3 per cent to $6.3 billion in June, as plans for both residential and non-residential projects declined from the month before, Statistics Canada said in its report.
The most significant decrease occurred in Ontario, where the value of building permits – a key indicator of construction activity – fell 7.9 per cent to $2.3 billion. Six provinces saw declines in their numbers.
Nationally, the residential sector experienced a 4.4 per cent drop to $3.6 billion, generated by lower values in multi-family permits in all provinces except Saskatchewan.
In non-residential building, permits fell 6.6 per cent to $2.8 billion due to declines in commercial and industrial intentions, the federal agency said.
The 5.3 per cent drop was much worse than the one per cent monthly drop markets had been expecting, and the biggest monthly change since November of last year, according to TD Securities economics strategist Millan Mulraine.
June’s sharp drop places the value of permits 9.1 per cent lower than in the corresponding period last year, Mulraine said.
“On a city-by-city comparison, the report was fairly ugly,” Mulraine said, “with Montreal (down 12.1 per cent), Calgary (down 15.2 per cent), Vancouver (down 13.4 per cent) and Saskatoon (down 16.7 per cent) all posting double-digit declines.
“On the whole, it is now becoming clear that the Canadian housing market is continuing to cool, as the level of activity moderates to more sustainable levels. And we expect this correction to continue at a measured and orderly pace,” Mulraine said.
