October 2012 Housing Starts in St. John’s

November 8, 2012 · Filed Under CMHC Reports, St. John's Real Estate 

Housing starts in the St. John’s Real Estate market, Census Metropolitan Area (CMA) were trending at 2,260 units in October, 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 1,670 units in October, down from 2,122 in September.
After ten months, multi-family starts have risen substantially from the previous year,  contributing to the overall increase in total new home construction activity throughout the St.  John’s area. Favourable mortgage rates, income and employment growth, and positive migration flows  have supported housing demand in 2012,” 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 104 actual units in October compared to 111 units a year ago. Multiple starts totalled 42 actual units in October  versus 29 units in October of last year. Year-to-date total starts have reached 1,776 actual units, with 1,069 singles and 707 multiples. Overall, total starts this year remain 12 per cent ahead of last year’s pace.

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