First Quarter Housing Starts Lower in Guelph

TORONTO, ONTARIO--(Marketwire - April 8, 2011) - The Canada Mortgage and Housing Corporation (CMHC) released preliminary housing starts data for the Guelph Census Metropolitan Area(1) (CMA) today. Builders started 194 dwellings in the first quarter of 2011, down from the strong 254 units started in the same quarter last year.

To view the graph associated with this release, please visit the following link: http://media3.marketwire.com/docs/guelph_chart.pdf.

Builders poured 44 foundations for single-detached homes in the first quarter, down significantly from the 111 units started in the first quarter of 2010. While semi-detached starts increased by four units, townhouse construction more than offset the increase, declining to 36 units from 81 units started a year earlier. A total of 96 condominium apartment starts were recorded in the first quarter of 2011, up from the 48 apartment units started in the first quarter last year.

"Homebuyers moved their purchases forward into the early part of 2010 to avoid anticipated mortgage rate increases and the introduction of the HST. This meant demand was down later in 2010, resulting in less building activity in the first quarter of 2011," said Erica McLerie CMHC Senior Market Analyst for the Guelph CMA. "Relatively low mortgage rates, an improving economy and some spillover from a tight resale market will support starts in 2011", added McLerie.

As Canada's national housing agency, CMHC draws on 65 years of experience to help Canadians access a variety of high quality, environmentally sustainable and affordable homes. 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.

To view the figure associated with this release, please visit the following link: http://media3.marketwire.com/docs/guelph_figure.pdf.

For more information, visit www.cmhc.ca or call 1 800 668-2642.

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(1) Statistics Canada defines a census metropolitan area (CMA) as one or more adjacent municipalities integrated with an urban core. A CMA must have a total population of at least 100,000 of which 50,000 or more must live in the urban core.