Canada Mortgage and Housing Corporation

Canada Mortgage and Housing Corporation

October 11, 2016 08:15 ET

September 2016 Housing Starts in London

TORONTO, ONTARIO--(Marketwired - Oct. 11, 2016) - The trend measure for total housing starts in the London Census Metropolitan Area (CMA) increased from 3,616 units in August to 3,713 units in September, 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.

"Starts of single-detached homes trended up in September, causing the total starts trend measure to increase. A greater shortage of single-detached homes in the resale market allowed builders to sell a higher number of new single-detached homes. The greater demand also caused the inventory of completed and unsold new single-detached homes to decrease to a low enough level to prompt builders to increase 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 monthly SAAR of total starts decreased from 4,607 units in August to 2,109 units in September, primarily due to a slowdown in homes started in multi-unit structures. The monthly SAAR of homes started in multi-unit structures is quite volatile month-to-month in London. The monthly SAAR of single-detached starts, which is far steadier month to month, increased in September.

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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Tables and a graph are available at the following link: http://media3.marketwire.com/docs/1072000e.pdf

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