P.E.I. hous­ing starts fall

The trend is a six-month mov­ing av­er­age

The Guardian (Charlottetown) - - BUSINESS -

Hous­ing starts in Prince Ed­ward Is­land’s ur­ban ar­eas were trend­ing at 485 units in De­cem­ber, com­pared to 525 in Novem­ber, ac­cord­ing to Canada Mort­gage and Hous­ing Cor­po­ra­tion.

The trend is a six-month mov­ing av­er­age of the monthly sea­son­ally ad­justed an­nual rates (SAAR)1 of hous­ing starts.

“Mul­ti­ples starts boosted to­tal starts this year be­yond 2014 fig­ures for both Char­lot­te­town and Sum­mer­side,” said Sarena Teak­les, mar­ket an­a­lyst with CMHC’s At­lantic Mar­ket Anal­y­sis Cen­tre in a re­cent news re­lease.

“Grow­ing de­mand for rental ac­com­mo­da­tions from in­ter­na­tional im­mi­grants and down­siz­ing re­tirees stim­u­lated mul­ti­ples starts in 2015,” she said.

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.

The stand­alone monthly SAAR was 105 units in De­cem­ber 2015, down from 392 units in Novem­ber 2015.

CMHC of­fers ob­jec­tive hous­ing re­search and in­for­ma­tion to Cana­dian gov­ern­ments, con­sumers and the hous­ing in­dus­try.

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