Building permits dropped in seven provinces, with the biggest decreases in Ontario, Alberta, and Nova Scotia, StatsCan said. The decline in those provinces was mainly due to a drop in non-residential permits, which had reported strong gains the previous month.
New building permits take a nosedive in May
July 6, 2010
Building permits dropped 10.8% in May. That means that intentions to build decreased by 10.8% in May. That’s a lot. But don’t panic yet. Building permits are a highly volatile indicator that doesn’t necessarily indicate… well, any real trend.
That being said, you might wonder why the hell I’m writing this post to begin with. It’s a question of compounding factors. We did a post earlier on Vancouver home sales cooling, 60% of Canadians are worried about keeping up with payments if interest rates rise, and other factors are all pointing toward a leveling off of the housing market.
That being said, the main drop-off in demand for permits was in the non-residential sector which dropped by 18.3%. Condos, on the flip side, rose by 2.5% while residential permits overall fell 5.3%.
According to the Toronto Sun:
So this looks like it might be more of a problem with the commercial real estate sector rather than for