Wendy Mclellan
Province
B.C. posted the largest dollar decrease in building permits in the country in January, reaching the lowest level since April 2006, and possibly signalling a cooling period in the province’s housing market.
The total value of residential and non-residential permits in B.C. fell 22.4 per cent to $815 million compared to December 2007, with the largest declines in the Vancouver area, according to a Statistics Canada report released yesterday.
While the numbers were down 26.1 per cent to $427 million worth of permits issued in Vancouver during January, Victoria’s total building permit figures increased by 64.1 per cent compared to the previous month. Abbotsford posted gains of 57.4 per cent.
All three B.C. areas declined compared to January 2007.
“Strength in employment, growth in disposable income, [the] dynamic economy in Western Canada and tight apartment-vacancy rates in certain centres are factors that could affect positively the demand for housing,” the report said. “On the other hand, the impact of price increases on housing affordability and the signs of a weakening U.S. economy and their spillover effects in Canada could erode the demand.”
The Vancouver Regional Construction Association responded to the report, saying the declines are “within normal industry bounds” and aren’t cause for concern.
“We don’t see this as a longer-term trend as the industry is still operating at full capacity,” said association president Keith Sashaw.
“We will continue to watch the numbers, but we are not hearing concern from our members at this point.”
Philip Hochstein, president of the Independent Contractors and Businesses Association, also offered a positive face on the figures.
He said B.C.’s overheated construction market has caused labour shortages and cost increases and a slowdown would benefit the industry and consumers.
© The Vancouver Province 2008
