Toronto home sales were up 19 percent, says CMHC

According to a market analysis released this week by the Canada Mortgage and Home Corporation (CMHC), the number of seasonally adjusted housing starts in Toronto increased.

Where concrete has been poured for the footing around the structure, or the equivalent stage when a basement is not part of the structure, a housing start is defined by CMHC as when construction on a building where a dwelling unit is located begins.

The seasonally adjusted annual rate (SAAR) of home starts in Toronto was 55,291 units in September, up 19% from August’s figure of 46,425 starts.

Between August and September, SAAR starts for single-detached homes decreased by 20%, from 7,389 to 5,875 starts. When it comes to “All Others” home types, monthly SAAR Toronto starts increased by 27%, from 39,036 to 49,416.

When housing starts in cities with populations of 10,000 or more are examined, Toronto reported 4,612 starts in September, up 65 percent from 2,791 starts the previous year.

In September, the Canadian Mortgage and House Corporation (CMHC) reported 271,068 housing starts, down from 284,757 in August.

“​​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 Canada’s housing market,” the organization stated in its report.

According to the group, this trend indicator is a six-month moving average of the monthly SAAR of housing starts.

In September, the standalone monthly SAAR of home starts for all areas of Canada was 251,151 units. This represents a 4.4 percent decrease from August’s total of 262,754 units. Last month, urban starts fell by 4.5 percent to 223,055 units. Multiple urban starts and single-detached urban starts both recorded monthly reductions of 4% and 5.9%, respectively, with starts falling to 165,861 and 57,194 units.

“The six-month trend in housing starts declined from August to September, with total starts continuing to pull back from their earlier 2021 levels,” said Bob Dugan, CMHC’s chief economist. “Single-detached and multi-family SAAR starts were both lower in Canada’s urban areas in September, which led to a decline in overall SAAR starts for the month. On a trend and monthly SAAR basis, however, the level of housing starts activity in Canada remains high in historical terms.”

According to Dugan, among Toronto, Montreal, and Vancouver, the latter was the only market that did not have an increase in total SAAR starts in September, owing to reductions in the multi-family segment.

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