Canada - House Price Value for Existing Homes

Canada: House Price Value for Existing Homes

Mnemonic HPLX.ICAN
Unit Index Jun 2005=100, NSA
Adjustments Not Seasonally Adjusted
Monthly 2.33 %
Data May 2022 318.21
Apr 2022 310.97

Series Information

Source Teranet-National Bank
Release Teranet - National Bank National Composite House Price Index
Frequency Monthly
Start Date 3/31/1999
End Date 5/31/2022

Canada: Real Estate

Reference Last Previous Units Frequency
House Price Index May 2022 125.55 124.91 Index Dec2016=100, SA Monthly
House Price Index for New Homes May 2022 125.7 125.1 Index Dec2016=100, NSA Monthly
House Price Value for Existing Homes May 2022 318.21 310.97 Index Jun 2005=100, NSA Monthly
Housing Starts May 2022 287.26 265.73 Ths. #, SAAR Monthly
Building Permits Apr 2022 11,679,415 11,755,040 Ths. CAD, SA Monthly
Residential Building Permits Apr 2022 29,181 23,070 #, SA Monthly
Building Completions 2022 Q1 50,928 56,207 #, NSA Quarterly
Dwelling Stocks 2021 16,284,235 # Annual

Release Information

The national bank house price index is an estimated index that measeures the increase/decrease in the value of properties over time by tracking home sale prices for properties that have been sold twice, allowing the source to calculate the increase or decrease in the value of the home over a given time period. 

The source trackes the registered home sale prices over time, looking for properties that have been sold at least twice, making it possible to see the increase or decrease in the value or the property over a period of time. 

A constant level quality of each property is assumed, however some properties do not meet requirments for this assumption and are therefore removed from the survey. Factors that could cause a property to be removed from the sample include a non-arms-length-sale, renovations that occured between salles that changed the value of the property, data error, and high turnover frequency. 

The source then uses a linear regression algorithm to estimate the index using the qualifying properties. 

The source also uses a process to weight poperties differently in the index. This weighting process uses geographical area of interest, frequency of the percent change of the property in the set, and time interval between sales. 

It is noted that the above weighting schemes may not be exactly representative of the reality because there are many unknown factors.

The repeat sales index construction is based on a simple linear regression model, whose regression coefficient is the reciprocal of the desired index.

The source uses three different estimators to calculate all pre base period indices simulataneously. These estimators include least squares (LS), instrumental variables (IV), and generalized method of moments (GGM).

The source then refines the initial weights and downweights data flagged as an outlier. 

Data is subject to revision. 

For the full methodology please see this document.


Copyright: Teranet – National Bank House Price IndexTM

Source: Teranet Inc. and National Bank of Canada