- Statistics Canada
The number of new building permits issued in Canada soared significantly in July, boosting optimism over the health of the country's real estate sector. Canadian building permits rose unexpectedly 11.8% to 9.16 billion Canadian dollars, the highest level on record, in July from an upwardly revised 16.4% in June as a surge in planned construction of condominiums and apartments in Ontario and British Columbia pushed overall levels in the multi-family category to the highest on record. Economists' expectations were for permits to fall 7.5% in July from the initially estimated 13.5% advance in the previous month. Residential building permits jumped 18%, the fifth increase in a row and the largest since January, to C$4.97 billion as permits for multi-family dwellings soared 43.4% to C$2.54 billion. Permits for single-family homes declined 0.5% to C$ 2.42 billion. Non-residential permits were up 5.2% after double-digit jumps in the two previous months.
The new data come after the Bank of Canada warned in its September statement that the housing market "has been stronger than anticipated." Economists as well as policymakers have been worrying about the housing market reaching unsustainable levels, as interest rates remain at record low levels. Adding to those concerns are July's other housing data, which point to a rapidly expanding sector.
© Dukascopy Bank SA