TORONTO, ONTARIO--(Marketwired - June 10, 2013) - Housing starts in the Ontario region were trending at 57,773 units in May, compared to 56,073 in April, 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.
"As expected, residential construction bounced back from historically low levels in April. Even though housing starts were running above trend, May starts were still better in line with demographic demand in the province of Ontario. More modestly priced housing led the gains as a backlog of apartment structures that sold in recent years broke ground as did row structures in May," said Ted Tsiakopoulos, CMHC's Ontario Regional Economist.
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 standalone monthly SAAR was 67,429 units in May, up from 46,054 units in April. .While single detached construction rose, multi family home construction drove starts. The strength in starts was broad based across the province with communities outside of the GTA contributing to this strength. High density construction in Toronto and London drove provincial activity in May.
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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