Canadians are showing a renewed interest in condo living, a trend that is helping to propel the country’s building activity.

As well, economists expect average house prices to jump by 9 percent this year to an average of about $350,000.

Statistics Canada says the latest building permit numbers showed a 12 percent increase in March over February, largely for condominium developments in Ontario and British Columbia along with industrial construction.

By Jim Fox
LEDGER CORRESPONDENT
Published: Saturday, May 15, 2010

Compared with a year earlier, building permits increased almost 39 percent to $6.3 billion and represented the first gains in four months.

The multifamily dwelling permits were up about 54 percent at $1.5 billion, the highest level since July 2008, while single-family housing numbers were unchanged and industrial projects jumped by 57 percent.

TD economist Pascal Gauthier said that while housing prices are increasing this year, they will slow in 2011 with a “modest pullback” of 2.7 percent nationally.

The correction will be because of more housing being built, rising interest rates and eroding affordability.

Original Article: http://www.theledger.com/article/20100515/NEWS/5155010/1410?Title=Canada-Report-Building-Permits-Up-in-March-With-Increased-Interest-in-Condos