Is Stats Canada's New Housing Price Index a joke?

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CLIFF PESKIN

BabbleBee

285

Is Stats Canada's New Housing Price Index a joke?

Stats Canada publishes a monthly index called the NHPI (New Housing Price Index). In principle, this index is a great idea but its execution is pathetic.

For starters, why is Toronto grouped together with Oshawa? What does Toronto have to do with Oshawa?
Second, the reference period for the report is said to be 2007 but what does this mean; when in 2007?
Third, the report says Vancouver new home prices have declined 1.3% since 2007. Huh?

So, something seems seriously wrong with Statistics Canada's New Housing Price Index. Is there something I'm missing?

Canada / General Chit-Chat

CLIFF PESKIN

BabbleBee

285

btw you can check out the report here...
http://www40.statcan.gc.ca/l01/cst01/manuf12-eng.htm

KAI MIN

NewBee

Yeah those stats look weird I agree... however it's Stat Can we are talking about, their stats are compiled and presented on a broad scale taking important and probably stupid factors into account, imo I'd say we are better off focusing on each independent real estate board for specific localized data - its the broad data that makes the news and fans the flames imo

BEN RABIDOUX

Buzzer

YES it is a joke if we are using it as a proxy of the real-world cost of new homes. It is useful as a measure of CPI as it strips out "inflation" caused by changes in size/amenities to give pure price change, but to use it to say "the cost of new houses rose X%" as is so often done by the media is flat out ridiculous. Two posts to help you understand this:
http://www.theeconomicanalyst.com/content/understanding-economist-data-canadian-housing
http://www.theeconomicanalyst.com/content/canadian-house-price-affordability-measures-are-still-misleading

MATTHEW SLUTSKY

BuzzStaff

1969

Is this only for "houses"?

PRADEEP CHAMOLI

NewBee

why we have to pay real estate broker 3.5% on sale price, why do not we pay on 3.5% on profit? is it legitimate to pay real estate broker 15 to 25 thousand on half million property. what they really do for the seller.

LEONARD THE BEE

Buzzer

160

pradeep said:
why we have to pay real estate broker 3.5% on sale price, why do not we pay on 3.5% on profit? is it legitimate to pay real estate broker 15 to 25 thousand on half million property. what they really do for the seller.

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