PERMITS BOUNCE BACK

Alberta building permits rebound to pre-boom levels
Edmonton Journal; with files from Postmedia News
August 6, 2010

Calgary posted a monthly increase in the value of building permits in June, but it was still lower from last year's figure, Statistics Canada said Thursday.

Building permit values, at $375 million, were up 19.2 per cent from May, but that's down 12.5 per cent from the same time last year.

For Alberta, total building permits rose to $1.19 billion in June, up 29.9 per cent year-over-year, led by a strong recovery in residential permits.

From May to June, Alberta permit values went up 17.7 per cent, but it was a 67.9 per cent increase in nonresidential construction intentions that pulled the figure up. Residential permits actually fell 8.5 per cent from May.

"The increase in Alberta was attributable to all components in the non-residential sector," the federal agency said.

Southern Alberta, where Lethbridge and Medicine Hat spiked in June, reaching $54.2 million for the month, has rebounded to pre-boom levels, said ATB Financial senior economist Todd Hirsch.

"After peaking during the summer of 2008, there was a strong pullback in activity in the Lethbridge and Medicine Hat region," Hirsch said.

"In recent months, however, it seems that building permits have stabilized at a level more or less consistent with that seen prior to the boom years. This trend may yet soften a bit with a moderation in the real estate market later this year, but the overall industry appears to be in good shape."

Nationally, the value of building permits jumped more than expected in June, as an increase in non-residential activity offset a decline in residential permits.

Values rose 6.5 per cent to $6.6 billion during the month. Most economists had expected a gain of 1.8 per cent.

The June figure was up 24.9 per cent from the same month last year, the federal agency said.

In the non-residential sector, permit values rose 23.5 per cent to $3 billion. "This increase was largely attributable to higher commercial and institutional construction intentions in Ontario and higher commercial construction intentions in Alberta," the agency said.

Residential permits, meanwhile, fell 4.5 per cent to $3.6 billion in June, due to a decline in single-family intentions. It was the third straight monthly decline for the sector.

In total, permit values rose in six provinces. The biggest gains were in Alberta, Newfoundland and Labrador and British Columbia. The largest drop was in Saskatchewan.

Photo By: Daniel Brennwald