|Real Canadian Existing Home Prices for 30 years|
Real Canadian Existing Home Price for 30 years
The chart is from Scotia economist Derek Holt's report: Is there a canadian housing bubble November 24 2009.
Garth Turner analyzed this chart in his bog "Bubble Talk" to indicate it took 13 years for prices to recover from the last housing bubble.
CPI: Consumer price indexes -- Measures of changes in prices paid by consumers, such as the Consumer Price Index and the New Housing Price Indexes.
The New Housing Price Index (NHPI) is a monthly series that measures changes over time in the contractors' selling prices of new residential houses, where detailed specifications pertaining to each house remain the same between two consecutive periods.
HPI: Housing Price Index measures benchmark or typical home prices.
The MLSLink Housing Price Index (HPI), established in 1995, is modeled on the Consumer Price Index (CPI) which measures the rate of price change for a basket of goods and services including food, clothing, shelter, and transportation.
Instead of measuring goods and services, the HPI measures the change in the price of housing features. Thus, the HPI measures typical, pure price change (inflation or deflation).
HPI is not 'average' price. The HPI benchmarks represent the price of a typical property within each market. The HPI takes into consideration what averages and medians do not – items such as lot size, age, number of rooms, etc. These features become the composite of the ‘typical house’ in a given area.
Each month’s sales determine the current prices paid for bedrooms, bathrooms, fireplaces, etc. and apply those new values to the ‘typical’ house model.
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