Turns out April’s dip in the number of building permits issued in Canada was the anomaly, not the norm.
According to data released by Statistics Canada on July 10, 2018, the value of Canadian building permits rose 4.7% in May, over the prior month of April. This rise effectively reversed the 4.7% decline reported in April and signalled the strong intentions of builders and developers to increase the supply of residential real estate within Canada.
Turns out, builders are now very optimistic despite the slower start in residential activity in 2018. The value of residential building permits rose 7.7% in June — the second-highest level on record. Five provinces posted an increase with Ontario and British Columbia reporting the largest gains.
Builders are most optimistic about the future of multi-family housing (with the value of permits for multi-family dwellings climbing to a record high) but still positive regarding single-family (SF) homes since these building permits also rose, up 6.2%. This was the first increase in SF building permits after four straight monthly declines. And guess what? Ontario led the gains.
Turns out Statscan revised their April figures to show a 4.7% decline, slightly larger than the 4.6% drop initially reported. But in light of recent gains, this revision isn’t causing any concern in the residential real building community.