August 2013 Housing Starts in Ontario

TORONTO, ONTARIO--(Marketwired - Sept. 10, 2013) - Housing starts in the Ontario region were trending at 59,187 units in August, compared to 58,292 in July, according to Canada Mortgage and Housing Corporation (CMHC). The trend is a six month moving average of the monthly seasonally adjusted annual rates (SAAR)⁽¹⁾ of housing starts.

"The trend in Ontario new home construction edged higher for a second consecutive month in Ontario - stabilizing in the 55,000 to 60,000 SAAR starts range in recent months. Stability in resale market conditions very early this year combined with a gradual improvement in the job market has halted the slide in residential starts witnessed between the spring of last year and spring of 2013," said Ted Tsiakopoulos, CMHC's Ontario Regional Economist.

CMHC uses the trend measure as a complement to the monthly SAAR of housing starts to account for considerable swings in monthly estimates and obtain a more complete picture of the state of the housing market. In some situations, analysing only SAAR data can be misleading in some markets, as they are largely driven by the multiples segment of the markets which can be quite variable from one month to the next.

The standalone monthly SAAR was 67,767 units in August, up from 59,372 units in July. Row and backlog of apartment units breaking ground boosted activity while single and semi detached construction eased in August. Growth in construction was broad based with communities in and outside of the GTA posting increases. For the year ending August, Ontario urban starts are down 26 per cent from this time last year.

Preliminary Housing Starts data is also available in English and French at the following link:
Preliminary Housing Starts Tables

As Canada's national housing agency, CMHC draws on more than 65 years of experience to help Canadians access a variety of quality, environmentally sustainable and affordable housing solutions. CMHC also provides reliable, impartial and up-to-date housing market reports, analysis and knowledge to support and assist consumers and the housing industry in making informed decisions.

Follow CMHC on Twitter @CMHC.ca

⁽¹⁾ All starts figures in this release, other than actual starts and the trend estimate, are seasonally adjusted annual rates (SAAR) - that is, monthly figures adjusted to remove normal seasonal variation and multiplied by 12 to reflect annual levels. By removing seasonal ups and downs, seasonal adjustment allows for a comparison from one season to the next and from one month to the next. Reporting monthly figures at annual rates indicates the annual level of starts that would be obtained if the monthly pace was maintained for 12 months. This facilitates comparison of the current pace of activity to annual forecasts as well as to historical annual levels.

Additional data is available upon request.

(Ce document existe également en français)

A table and a graph are available at the following address: http://media3.marketwire.com/docs/897169a.pdf