According to the Canadian Real Estate Association, building permits declined 5.3 per cent in June. This represents the biggest fall since November 2007 in the country’s construction sector.
The value of residential permits fell 4.4 per cent, as builders planned fewer multiple-unit projects. Non-residential permits also dropped 6.6 per cent, due to less construction activity by utility and hotel companies.
The value of permits issued by municipalities reduced to C$6.32billion, although economists were anticipating a smaller fall of 1 per cent. Many reporters see this as further confirmation that housing and construction will detract from Canada’s economic growth this year, as record prices and rising mortgage costs make real estate purchase less affordable.
For more Canadian Real Estate news visit www.canada.myfirsthomeblog.com