Canada Mortgage and Housing Corporation

Canada Mortgage and Housing Corporation

April 10, 2015 08:15 ET

March 2015 Housing Starts in London

TORONTO, ONTARIO--(Marketwired - April 10, 2015) - Housing starts in the London Census Metropolitan Area (CMA) were trending down at 1,755 units in March compared to 2,042 in February, 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 total starts trend moved down, primarily due to fewer starts of single-detached and row homes over the past six months. Builders produce move-in ready single-detached and row homes, in part, to attract buyers that prefer a quick closing and the certainty that comes with selling their existing home today. Unsold inventories remained high and thus delayed 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 SAAR of total starts was 821 units in March, down from 3,054 in February due to no apartment starts, as well as fewer single-detached and semi-detached 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/1001240a.pdf

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