This is an annualized indicator and therefore it should be noted the actual monthly values are multiplied by 12, it is released by Canada Mortgage and Housing Corporation and represents the annualized number of new residential buildings that began construction during the previous month.
Housing Starts indicator tends to have a tight correlation with Building Permits indicator in the sense that, under normal conditions, it is virtually impossible to start a new construction without first having a building permit for it.
This is why this indicator it is viewed as a second tier indicator as the information it is based on is already known from the Building Permit indicator. However, it is a leading indicator of economic growth as the construction sector has important roots into the GDP.
The most important things to take into consideration when looking at the Housing Starts indicator are:
- release date: monthly, about 9 days after month ends;
- release time: 12:15 GMT during North American trading session;
- brings low volatility;
- tight correlation with Building Permits.