Building permits decline in August; reversing the trend
Following three months of double-digit increases in the number of building permits issues by municipalities across Canada there was a drop in August. According to the latest data release from Statistics Canada the decline was mainly the result of lower construction intentions for non-residential buildings in Quebec and residential buildings in Ontario. After five consecutive monthly advances, the total value of permits in the residential sector declined 15.9 per cent in August to $4.2 billion. The largest decreases were registered in Ontario, followed by British Columbia and the Atlantic provinces. Gains were recorded in four provinces, led by Alberta. Building permits for multi-family dwellings decreased 28.6 per cent in August to $1.8 billion, following a 42.8 per cent increase in July. Decreases were reported in six provinces, led by Ontario, with British Columbia a distant second. Alberta and Saskatchewan registered the largest increases. Multi-family dwellings saw the biggest downturn, dipping 28.6 per cent after an increase of more than 40 per cent in July. In the non-residential sector, the total value of building permits decreased 40.6 per cent to $2.5 billion in August, following four consecutive monthly gains. Lower construction intentions were posted in seven provinces, with Quebec contributing most to the national decline.
Canada may need to take measures to slow housing market says IMF
The International Monetary Fund says that Canada may need to put tougher lending rules in place to slow down the housing market. In its economic outlook report issued in Washington yesterday the IMF says the housing market is 10 per cent above “fundamental values”. The report also sees more balanced economic growth in 2015 with exports boosted by a weaker Canadian dollar. Read the full story.
Energy efficiency and cleanliness are among the most important factors for Canada’s homebuyers. That’s according to the Home Critics Survey published by realtors Century 21. The poll also found that 40 per cent of buyers are looking for a property that fits with a lifestyle change, with millennials more concerned about how much space they are buying and baby boomers more interested about how the space is used and the neighbourhood the property is in. Sixty per cent of respondents say they would be put off a property if it wasn’t clean; double the number who would walk away due to water damage.