BCREA ECONOMICS NOW
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The value of Canadian building permits fell 27.3 per cent in August. Prior to Augusts’s decline, building permits had posted double-digit increases for three straight months. Lower construction intentions were primarily the result of declines in Quebec and Ontario.
New building permits in BC tumbled almost 28 per cent on a monthly basis and 11.1 per cent year-over-year. Both non-residential and residential permits were lower in August. On a unit basis, permits fell 22.6 per cent but were above the monthly average for 2014. The outsized monthly decline in August reflects a moderation of activity following robust construction intentions in July.
Building permit activity was mixed in BC’s four census metropolitan areas (CMA). Permits in the Abbotsford-Mission CMA fell 30.3 per cent on a monthly basis, but were 33.8 per cent higher than August 2013. Construction intentions in the Kelowna CMA jumped 38 per cent from July but were 37.2 per cent below August 2013 levels. In the Victoria CMA, permit activity increased 3.1 per cent on a monthly basis and was up 6.2 per cent year-over-year. Finally, in the Vancouver CMA, permits were down 32.9 per cent on a monthly basis and were 16.9 per cent lower year-over-year.