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The CREA Gets Real: Developing New Measure of Real Estate Health


BuzzBuzzHome Corp.

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:
“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.”

It’s all a bit technical but we know you love it.

Posted on December 7, 2010 | buzzhomeblog Posted in Uncategorized |
  • Anonymous

    if you don't like the facts – change the figures! i'm sure they'll change it back when it proves the point they want it too!

  • BuzzBuzzHome

    Hahaha – maybe. Hard to argue with the stated intent, though: As undistorted a snapshot of the national scene as possible.

  • BuzzBuzzHome

    Hahaha – maybe. Hard to argue with the stated intent, though: As undistorted a snapshot of the national scene as possible.