September 2013 Housing Starts in Ontario

TORONTO, ONTARIO--(Marketwired - Oct. 8, 2013) - Housing starts in the Ontario region were trending at 60,270 units in September, compared to 59,456 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.

"Despite a pull back in residential construction activity in September, home starts have stabilized after slowing for most of the past year. Higher demand for resale homes, a backlog of apartment units awaiting construction combined with a gradual improvement in the job market point to some firming in starts activity for the remainder of 2013," said Ted Tsiakopoulos, CMHC's Ontario Regional Economist.

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 57,808 units in September, down from 68,482 units in August. Row and apartment units dampened activity while single and semi detached construction remained stable in September. For the year ending September, Ontario urban starts are down 25 per cent from this time last year.

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.

Follow CMHC on Twitter @CMHC.ca

^[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.

Additional data is available upon request.

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To view the graph and table associated with this press release, please visit the following link: http://media3.marketwire.com/docs/903132e.pdf.