August 6, 2010
The value of building permits are a dubious statistic because of their volatility. However, they can be a useful leading indicator for the overall market– if there’s an ongoing trend.
And, much to the surprise of analysts, the value of building permits rose 6.5% in June! This is likely largely due to the commercial sector, but an increase is an increase.
According to the Financial Post:
The value of permits in the non-residential sector climbed 23.5% in June from May, but permits for homes dropped for a third straight month, down 4.5%.
So it looks like building intentions are actually going down, but the overall sentiment of the market still seems decent. Prices are not wildly increasing, but they seem to be stabilizing. The market is adjusting, but doing so in a calm and orderly way. Go Canada! The home of peace, order and good government– even when it comes to real estate.