September 2014 Housing Starts in Hamilton CMA

TORONTO, ONTARIO--(Marketwired - Oct. 8, 2014) - Housing starts in Hamilton Census Metropolitan Area (CMA) were trending up at 3,300 units in September compared to 2,884 units in August, 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 trend in Hamilton CMA total housing starts increased in September 2014, resuming the upward trajectory that started in April. Housing starts were up across all dwelling types, with the exception of single-detached homes. Hamilton's multi-unit housing starts have been trending higher since 2011. A tight resale market with a lower supply of affordable homes has encouraged some buyers to purchase new condominiums and townhouses, which are considered relatively less expensive," said Abdul Kargbo, CMHC's Senior Market Analyst for Hamilton and Brantford CMAs.

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 multiples segment includes apartments, rows and semi-detached homes.

The standalone monthly SAAR was 4,773 units in September, up from 2,358 units in August. This month's spike in the SAAR measure was mainly due to a 155-unit condominium structure in the City of Hamilton downtown core. Year-to-date however, apartment starts were 456 units, down 26 per cent compared to the first nine months of 2013.

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.

(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.

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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/971920a.pdf