Canada Mortgage and Housing Corporation

Canada Mortgage and Housing Corporation

December 08, 2015 08:15 ET

Housing Starts in Toronto Trend Higher in November 2015

TORONTO, ONTARIO--(Marketwired - Dec. 8, 2015) - Housing starts in the Toronto Census Metropolitan Area (CMA) trended at 45,866 units in November compared to 45,766, in October 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.

"A jump in condominium apartment starts, prompted in part by pre-construction condos getting underway, saw GTA housing starts trend higher in November," said Dana Senagama, CMHC Principal Market Analyst for the GTA. "Moreover, historically low borrowing costs have kept housing demand high across Toronto and November saw strong low-rise starts, particularly in single and semi-detached homes."

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 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 stand alone monthly SAAR was 58,964 units in November, up from 38,744 units in October. This was largely the result of a larger number of apartment starts this month.

The City of Toronto had the highest number of total starts led by condominium apartment units. Brampton had the next highest number of starts with single-detached and row starts dominating construction. Markham also had a high number of high-rise starts.

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

As Canada's authority on housing, CMHC contributes to the stability of the housing market and financial system, provides support for Canadians in housing need, and offers objective housing research and information to Canadian governments, consumers and the housing industry.

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(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.

Information on this release:

This release is also available at www.cmhc.ca

Additional data is available upon request.

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Tables and a graph are available at the following address: http://media3.marketwire.com/docs/E1035940.pdf

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