TORONTO — Housing starts in Toronto declined in June to 31,950 units compared to 32,897 in May according to the Canada Mortgage and Housing Corporation (CMHC).
"A drop in apartment starts was responsible for the decline in total housing starts in June. Apartment starts tend to vary from month to month and such fluctuations do not point to a longer term trend," said Dana Senagama, CMHC's Toronto senior market analyst.
"Starts of townhouses and semi-detached homes are trending higher which points to the increasing popularity of less expensive low rise homes, especially among first time home buyers."
The housing starts figures reported by CMHC are seasonally adjusted annual rates (SAAR), which means that monthly figures are adjusted to remove normal seasonal variation and multiplied by 12 to reflect annual levels.
The trend is a six-month moving average of the monthly seasonally adjusted annual rates (SAAR)(1) of housing starts.
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. The standalone monthly SAAR was 26,479 units in June, down from 37,854 units in May.