07:15 AM EST, 11/13/2024 (MT Newswires) -- Canada's volatile building permits jumped in September, though the trend has been relatively stable since spiking during the pandemic, noted Bank of Montreal (BMO).

However, the headline number reflects price changes -- a

more accurate measure of permit volumes, at least in the residential sector -- is reflected in the number of dwelling units created, said the bank.

This measure looks to have plateaued after coming down from its 2022 spike alongside the swings in interest rates over the last couple of years, stated BMO.

Housing construction will face competing forces over the next year, pointed out the bank. Sharply lower immigration and a glut of existing inventory in some sectors will provide a headwind.

On the flip side, lower interest rates will help demand and reduce construction costs, it added.