Total building permit values in the Abbotsford region dropped in June, according to the Vancouver Regional Construction Association’s analysis of today’s Statistics Canada building permit report.
“There were
substantial percentage decreases in building permit values in the Abbotsford region in June 2010,”
says Keith Sashaw, president of the Vancouver Regional Construction Association.
“The underlying trend remains level for the local construction sector, though some softness is certainly coming in the residential and government sectors with declining housing sales and the ending of stimulus plans.”
Seasonally adjusted total building permit values in the region dropped 50 per cent in June compared to May 2010, to $10.1 million. Non-residential permit values declined to $4.9 million, down 20 per cent for the month, while the value of residential permits decreased 63 per cent to $5.2 million from $14.1 million in May.
“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 Abbotsford region are up to $75.2 million in the first six months of 2010 compared to $68.7 million in the same period last year. The nine per cent rise is led by a 75 per cent increase in residential permits year-to-date. Non-residential permits are 43 per cent lower to $20.2 million from $35.4 million 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