“The real estate association is considering the model used to generate the Standard & Poor’s Case-Shiller national home price index, which measures market activity in the United States each month. That index only includes houses that have been sold more than once, and measures the difference between the two sale prices.”
The CREA Gets Real: Developing New Measure of Real Estate Health
December 7, 2010
The Canadian Real Estate Association is working on a new formula to determine the health of the country’s housing market.
As many have pointed out, the current method of measuring market conditions – which was developed decades ago – allows for national numbers to be unduly skewed by short-term fluctuations in Toronto and Vancouver. Swings in those two markets can make Canadian home prices as a whole seem more volatile than almost all regions actually are.
A report in today’s Globe and Mail adds that:
It’s all a bit technical but we know you love it.