September 2012 Housing Starts for the St. John’s Real Estate Market

October 9, 2012 · Filed Under CMHC Reports 

Housing starts in St. John’s Census Metropolitan Area (CMA) were trending at 2,386 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) 1 of housing starts. The standalone monthly SAAR was 2,137 units in September, down from 2,416 in August.

“After nine months, both single-detached and multi-family starts have risen from the previous year.  Low mortgage rates, full-time employment gains, positive migration flows and a more balanced resale market have supported overall 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 141 actual units in September 2012 versus 124 during September 2011.  Multiple starts totalled 58 actual units in September, with a similar number of units reported in  September of last year. Year-to-date total starts have reached 1,630 actual units, with 965 singles and 665 multiple starts. Overall, total starts this year remain 13 percent ahead of the pace set last  year.

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