Canada Mortgage and Housing Corporation

Canada Mortgage and Housing Corporation

July 09, 2015 08:15 ET

June 2015 Housing Starts in Hamilton CMA

TORONTO, ONTARIO--(Marketwired - July 9, 2015) - Housing starts in Hamilton Census Metropolitan Area (CMA) were trending up at 1,497 units in June compared to 1,337 units in May, 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 Hamilton CMA total housing starts increased in June 2015, following seven consecutive monthly declines. The trend reversal was mainly due to a rebound in townhouse starts. Warmer temperatures and a pickup in demand helped absorb the current inventory of multi-unit dwellings. The sales-to-new-listings ratio of existing townhouses remained high which has resulted in a spill over demand for new townhouses. Generally, new home sales tend to follow a pattern that is very similar to existing home sales with a three-month lag," said Abdul Kargbo, CMHC's Senior Market Analyst for Hamilton and Brantford CMAs.

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 multiples segment includes apartments, rows and semi-detached homes.

The standalone monthly SAAR was 2,608 units in June, up from 2,164 units in May, marking three consecutive monthly increases. Similar to the trend measure, the June increase in the SAAR measure of housing starts reflected continued strength in single-detached housing construction and a rebound in townhouse 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.

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)

Tables and a graph are available at the following address: http://media3.marketwire.com/docs/1016355e.pdf

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