May 2013 Housing Starts in Ontario
TORONTO - Housing starts in the Ontario region were trending at 57,773 units in May, compared to 56,073 in April, 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.
"As expected, residential construction bounced back from historically low levels in April. Even though housing starts were running above trend, May starts were still better in line with demographic demand in the province of Ontario. More modestly priced housing led the gains as a backlog of apartment structures that sold in recent years broke ground as did row structures in May," 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 67,429 units in May, up from 46,054 units in April. .While single detached construction rose, multi family home construction drove starts. The strength in starts was broad based across the province with communities outside of the GTA contributing to this strength. High density construction in Toronto and London drove provincial activity in May.