November 2012 Housing Starts increase for the St. John’s Real Estate Market
Housing starts in St. John’s, Census Metropolitan Area (CMA) were trending at 2,215 units in November, 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. The standalone monthly SAAR was 2,148 units in November, up from 1,659 in October.
“After eleven months, multiple starts have advanced considerably and supported the increase in total new home construction activity throughout the St. John’s area. Growth in population, income and employment, paired with favourable mortgage rates, has supported housing demand this year,” said Chris Janes, CMHC’s Senior Market Analyst for St. John’s.
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, analyzing 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.
Single-detached starts added 103 actual units in November compared to 130 units a year ago. Multiple starts totalled 84 actual units in November versus 77 units in November of last year. Year-to-date total starts have reached 1,963 actual units, with 1,172 singles and 791 multiples. Overall, total starts this year remain ten per cent ahead of last year’s pace.