Canada Mortgage and Housing Corporation

Canada Mortgage and Housing Corporation

August 11, 2015 08:15 ET

July 2015 Housing Starts in London

TORONTO, ONTARIO--(Marketwired - Aug. 11, 2015) - The trend in housing starts in the London Census Metropolitan Area (CMA) was steady at 2,203 units in July compared to 2,212 in June, 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 housing starts trend remained close to annual household formation estimates for London. The majority of households added in London have two persons or fewer, which is one factor explaining why starts of smaller homes, such as row homes, have gained share at the expense of single-detached starts," said Anthony Passarelli, Senior Market Analyst with CMHC.

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 monthly SAAR of total starts was 1,190 units in July, down from 1,597 in June due to fewer starts of single-detached and row homes. No apartments or semi-detached homes were started. July housing starts were likely impacted by the City of London inside workers strike that lasted from May 25 2015 to July 22 2015(2).

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.

Follow CMHC on Twitter @CMHC_ca

Additional data is available upon request.

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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.

(2) Builders are legally required to obtain a building permit before starting construction of a new home. The City of London Building Division advised builders to expect delays processing building permit applications.

Tables and a graph are available at the following address: http://media3.marketwire.com/docs/1020868_ENG.pdf

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