Housing starts in the Ontario region were trending at 60,850 units in January, compared to 61,071 units in December, 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.
“Residential construction activity bounced back closer to trend levels in January from lower levels in December. Inclement weather was likely a factor during the previous month as Toronto and some surrounding areas, hit most by snowy weather, experienced a bigger bounce back in January. Strong demand for resale homes, a backlog of apartment units awaiting construction in combination with a gradual improvement in the job market are factors supportive of housing construction in early 2014,” stated 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.