Today’s building permits report continues to confirm the strength of Canada’s residential housing market, but the less feverish pace of permit issuances suggests moderation in housing activity is in store, RBC Financial Group says.

Statistics Canada said the value of Canadian building permits was up narrowly in April by 0.5%. Markets had been expecting a 2% increase, but a slight upward revision in the previous month’s data puts levels near expectations.

“Beneath the headline numbers, residential permits fell 6.8% during the month,” said RBC economist Carl Gomez. “The declines were registered in both the single and multiple categories, but the latter more volatile sector posted a sharper monthly fall. Nevertheless, the multi-family market set a new year to date record for permits in April at $2.7 billion.”

Building intentions were up sharply in the non-residential sector, with permits in this category surging by 14.8%. However, Gomez said, the monthly rebound comes largely as a result of some large institutional projects, notably in Manitoba, and the trend level of activity in the non-residential sector remains relatively subdued.

RBC said next week’s housing starts report will probably reflect the expected moderation in housing activity.