Canada Mortgage and Housing Corporation

Canada Mortgage and Housing Corporation

February 10, 2014 08:15 ET

January 2014 Housing Starts in London

TORONTO, ONTARIO--(Marketwired - Feb. 10, 2014) - Housing starts in London, Census Metropolitan Area (CMA) were trending at 2,117 units in January compared to 2,214 in December 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 tarts.

"Residential housing start activity in January was focused within the City of London, specifically single detached starts which were significantly stronger than the January 2013 result. On a seasonally adjusted basis, single detached starts were within the range seen through the latter part of 2013.Total start activity in the CMA was slower in January than a year prior, the majority of the slowing occurring outside of the City of London. The current mortgage rate environment, wealth effect from stock market gains through 2013 and increased optimism about the prospects for 2014 will have supported single-detached start activity in the City of London through January." said Alexander Bonnyman, CMHC's Senior Market Analyst for London.

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 SAAR of total starts was 1,331 units in January, down from 3,607 in December.

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.

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A graph and tables are available at the following link: http://media3.marketwire.com/docs/926489e.pdf.

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