Total building permit values in the Lower Mainland-Southwest region rose significantly in June from May 2010, boosted by the residential sector, according to the Vancouver Regional Construction Association’s analysis of today’s Statistics Canada building permit report.
“June building permit values reached the highest monthly total so far this year and are up 94 per cent from last June,” says
Keith Sashaw, president of the Vancouver Regional Construction Association.
“Residential permits saw a big increase in June 2010, hitting their highest level this year and the highest level since October 2007.”
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The June permit numbers are positive and significant, but we may see a fallback in the coming months,” says Sashaw. “The underlying trend remains level for the local construction sector, though some softness is coming in the residential and government sectors with declining housing sales and the ending of stimulus plans.”
Total building permit values in the region increased 19 per cent in June compared to May, to $599.4 million. Residential permit values jumped to $459.1 million, up 46 per cent for the month and the number of dwelling units increased 75 per cent, while the value of non-residential permits fell back 25 per cent to $146.4 million.
“The year-to-date building permit numbers remain positive partly due to the low levels during last year’s recession and partly to the upturn during this economic recovery,” says Sashaw.
Total building permit values in the Lower Mainland-Southwest region are up 82 per cent to $2.46 billion in the first six months of 2010 compared to $1.35 billion in the same period last year. The increase is led by a 151 per cent gain in residential permits year-to-date
compared to $606.1 million one year ago. Non-residential permits are up 20per cent to $711.8 million from $591.5 in the same period.
Housing sales and prices continue to decline and market conditions are much weaker now than seven months ago, says VRCA. Housing starts will follow the sales trend down. A market adjustment process seems to be underway and may last a few more months. The outlook for non-residential permits in 2010 remains mixed.
With more than 700 members, VRCA is British Columbia’s largest and most inclusive regional construction association, representing union and non-union, general and trade contracting companies, manufacturers, suppliers and other professionals throughout the Lower Mainland from Hope to Whistler.
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Full regional data and graphs attached. For more information, please contact:
Keith Sashaw – Vancouver Regional Construction Association – 604-294-3766
Sunny McKechnie – Edelman – 778-239-3400