Third Quarter Housing Starts Lower in Guelph

TORONTO, ONTARIO--(Marketwire - Oct. 11, 2011) - Canada Mortgage and Housing Corporation (CMHC) released preliminary housing starts data for the Guelph Census Metropolitan Area(1) (CMA) today. Builders started 167 dwellings in the third quarter of 2011, down from a stronger 229 units started in the same quarter last year.

To view the graph associated with this release, please visit the following link: http://media3.marketwire.com/docs/cmhc1011guelge.jpg.

Builders poured 64 foundations for single-detached homes in the third quarter, down from the 82 units started in the third quarter of 2010. While semi-detached starts increased to 12 units, townhouse construction fell to only 25 units from 75 units in the same quarter last year. Apartment starts, all condominium, were only slightly lower, decreasing to 66 units from 70 units in the third quarter of 2011. For the first three quarters of 2011, housing starts have declined to 528 units, with only semi-detached and apartment starts higher.

"The Guelph economy has been slow to recover and some households have put off their buying intentions," said Erica McLerie, CMHC Senior Market Analyst. "With single-detached new home prices rising at a significantly higher rate than resale prices, homebuyers have looked to the resale market to buy a home. With fewer first-time buyers in the market, demand for townhouses is down," added McLerie.

As Canada's national housing agency, CMHC draws on 65 years of experience to help Canadians access a variety of high quality, environmentally sustainable and affordable homes. 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.

To view the table associated with this release, please visit the following link: http://media3.marketwire.com/docs/cmhc1011guelte.jpg.

For more information, visit www.cmhc.ca or call 1 800 668-2642.

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(1) Statistics Canada defines a census metropolitan area (CMA) as one or more adjacent municipalities integrated with an urban core. A CMA must have a total population of at least 100,000 of which 50,000 or more must live in the urban core.