Canada Mortgage and Housing Corporation

Canada Mortgage and Housing Corporation

November 08, 2016 08:15 ET

Vancouver Housing Starts Dip in October

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Nov. 8, 2016) - Housing starts in the Vancouver Census Metropolitan Area (CMA) were trending at 26,074 units in October compared to 29,537 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.

"Total housing starts trended lower in October due to a decline in apartment starts," said Robyn Adamache, CMHC Principal Market Analyst for Vancouver. "Builders are concentrating on the many existing projects already underway in the CMA," added Adamache.

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 standalone monthly SAAR was 12,023 units in October, down from 36,803 units in September. The decline in the SAAR for Vancouver was across all home types, but the largest drop was apartment starts. With a record number of homes already under construction, builders are concentrating on their existing projects and taking a wait-and-see approach to new developments as the local resale market cools and adjusts to recent policy changes including the Foreign Buyer Tax and changes to mortgage insurance qualification criteria.

Housing starts in the Abbotsford-Mission CMA were trending at 1,153 units in October, up from 939 units in September. The upward trend is mainly due to an increase in apartment starts.

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 address: http://media3.marketwire.com/docs/1075561tables.pdf

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