Canada Mortgage and Housing Corporation

Canada Mortgage and Housing Corporation

June 08, 2016 08:15 ET

Saskatoon Housing Starts Trend Lower in May

SASKATOON, SASKATCHEWAN--(Marketwired - June 8, 2016) - Housing starts in the Saskatoon Census Metropolitan Area (CMA) were trending at 2,118 units in May compared to 2,494 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) of total housing starts.

"The trend in total housing starts moved lower in May after a slight increase in the pace of single-detached construction was more than offset by a declining trend in multi-unit starts. This year, total housing starts in the Saskatoon CMA are forecast to range between 1,690 units and 2,010 units, constrained by weak economic conditions and elevated inventory of new housing units," said Goodson Mwale, CMHC's Senior Market Analyst for Saskatchewan.

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, analyzing 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 1,285 units in May, down from 2,807 in April. The decline in overall actual housing starts in May was led entirely by the multiples sector where only four units were started, compared to 147 in the same month one year prior.

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, LinkedIn, Facebook, and YouTube.

Additional data is available upon request

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Tables and a graph are available at the following address: http://media3.marketwire.com/docs/1058169a.pdf

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