BC Real Estate Association-Building Permit Report
Canadian Building Permits - November 6, 2013
Canadian building permits rose 1.7 per cent in September to $6.5 billion, following a 20 per cent decline in August. The modest increase in building permits was led by the residential sector, primarily in Alberta and Quebec.
Construction intentions in BC declined 6 per cent in September from August and were nearly 19 per cent lower year-over-year. The value of residential permits were 14.1 per cent lower in September and 6 per cent lower year-over-year. The total number of residential units permitted in September fell 29 per cent from August due to a sharp decline in permits for multiple units. The value of non-residential permits rose 10.3 per in September.
Building permit activity across BC's four major census metropolitan areas (CMA) was mostly lower in September. In the Abbotsford-Mission CMA, permits rose 15.2 per cent on a monthly basis but were 61.7 per cent lower year-over-year. Construction intentions in the Victoria CMA declined for the second consecutive month, falling 2.5 per cent from August and 31.4 per cent year-over-year. In the Kelowna CMA, permits fell 52.8 per cent after posting a 70 per cent increase in August. Finally, in the Vancouver CMA building permits declined 11.3 per cent month-over-month and 29.2 per cent year-over-year.
Don't the above numbers transmit a buyer favourable environment? One always has to look 2 years ahead when looking at building permits and the effect on inventory. But it definitely looks like a pause here on the part of builders! That will help absorb the existing inventory over the next year or two.