TORONTO, ONTARIO--(Marketwired - Nov. 8, 2016) - The trend measure for total housing starts in the London Census Metropolitan Area (CMA) increased from 3,701 units in September to 4,134 units in October, according to Canada Mortgage and Housing Corporation (CMHC). The trend is a six month moving average of the monthly seasonally adjusted annual rates (SAAR) of housing starts.
"The trend measure was at its highest level in just over 10 years, due to a high number of homes started in apartment structures in October. The majority of the apartment starts this month were in the condominium market. Homeownership demand has increased this year as the result of higher full-time employment. The number of resale condominium apartments listed for sale was too low for the higher level of demand, allowing builders to sell a higher number of new condominium apartments," 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 increased from 2,058 units in September to 4,749 units in October, primarily due to much higher apartment starts. The monthly SAAR of apartment starts is very volatile in London, as most apartment starts are concentrated in a few months every year.
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.
For more information, visit our website at www.cmhc.ca or follow us on Twitter, YouTube, LinkedIn and Facebook.
Additional data is available upon request.
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To view the graph and tables associated with this release, please visit the following link: http://media3.marketwire.com/docs/1075547e_TABLES.pdf