37.3% increase from last year
The value of building permits in the Calgary region is on the rise.
The Calgary region saw a whopping year-over-year hike in May in the value of building permits, according to Statistics Canada.
The federal agency reported Monday that permits reached $636 million in the Calgary census metropolitan area. That was up 37.3 per cent from a year ago and it increased by 6.1 per cent from April.
During the month, residential permits were $432.6 million, an increase of 34.81 per cent from April but non-residential permits declined by 27.02 per cent on a monthly basis to $203.4 million.
“The population in Calgary has made some strong gains in recent years, largely due to the elevated number of people moving to the region,” said Richard Cho, senior market analyst in Calgary for Canada Mortgage and Housing Corp. “This along with impressive job growth has pushed up the demand for housing. New home inventories, and active listings in the competing resale market have also been relatively low, adding to the incentive to build more homes.
“We are expecting the pace of construction to moderate in the coming months. The number of units under construction in Calgary has risen and may put some upward pressure on inventories as these units reach completion. This may reduce the incentive to start new projects and temper the recent pace of new building permits.”
In Alberta, total permits of $1.5 billion rose by 9.8 per cent from April and by 4.4 per cent from May 2013. The residential sector saw permits of $845.7 million, up 5.5 per cent from the previous month but down 0.6 per cent from last year. The non-residential sector experienced permits rising by 16.2 per cent month-over-month and by 11.9 per cent year-over-year to $627.8 million.
The federal agency said municipalities issued building permits worth $6.9 billion in May, up 13.8 per cent from April. However, on a year-over-year basis permit value was down 6.4 per cent.
It said construction intentions for residential dwellings rose 9.5 per cent to $4.1 billion in May, but still off by 9.0 per cent from a year ago.
In the non-residential sector, the value of permits rose 20.8 per cent to $2.8 billion, which was also down from a year ago by 2.3 per cent.
Nick Exarhos, with CIBC World Markets, said building permits in Canada for May “blew the doors off expectations of a muted 2.0 per cent.”
The federal agency reported Monday that permits reached $636 million in the Calgary census metropolitan area. That was up 37.3 per cent from a year ago and it increased by 6.1 per cent from April.
During the month, residential permits were $432.6 million, an increase of 34.81 per cent from April but non-residential permits declined by 27.02 per cent on a monthly basis to $203.4 million.
“The population in Calgary has made some strong gains in recent years, largely due to the elevated number of people moving to the region,” said Richard Cho, senior market analyst in Calgary for Canada Mortgage and Housing Corp. “This along with impressive job growth has pushed up the demand for housing. New home inventories, and active listings in the competing resale market have also been relatively low, adding to the incentive to build more homes.
“We are expecting the pace of construction to moderate in the coming months. The number of units under construction in Calgary has risen and may put some upward pressure on inventories as these units reach completion. This may reduce the incentive to start new projects and temper the recent pace of new building permits.”
In Alberta, total permits of $1.5 billion rose by 9.8 per cent from April and by 4.4 per cent from May 2013. The residential sector saw permits of $845.7 million, up 5.5 per cent from the previous month but down 0.6 per cent from last year. The non-residential sector experienced permits rising by 16.2 per cent month-over-month and by 11.9 per cent year-over-year to $627.8 million.
The federal agency said municipalities issued building permits worth $6.9 billion in May, up 13.8 per cent from April. However, on a year-over-year basis permit value was down 6.4 per cent.
It said construction intentions for residential dwellings rose 9.5 per cent to $4.1 billion in May, but still off by 9.0 per cent from a year ago.
In the non-residential sector, the value of permits rose 20.8 per cent to $2.8 billion, which was also down from a year ago by 2.3 per cent.
Nick Exarhos, with CIBC World Markets, said building permits in Canada for May “blew the doors off expectations of a muted 2.0 per cent.”
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