Canada Mortgage and Housing Corporation

Canada Mortgage and Housing Corporation

July 09, 2015 08:15 ET

June 2015 Housing Starts in London

TORONTO, ONTARIO--(Marketwired - July 9, 2015) - The trend in housing starts in the London Census Metropolitan Area (CMA) was up slightly at 2,157 units in June compared to 2,116 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.

"Row home starts trended up, more than offsetting a slight decrease in single-detached starts. Demand has increased for new row homes due to a tight resale market in the $200,000 to $300,000 price range. Most new row homes are selling at a price point where there is a shortage of homes listed for sale," 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 1,278 units in June, down from 4,988 in May due to no apartment starts, as well as fewer starts of single-detached and row homes. June housing starts were likely impacted by the City of London inside workers strike that began on May 252.

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.

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.

Additional data is available upon request.

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Tables and a graph are available at the following address:

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