Resale Residential Property Price Index (RRPPI)

Detailed information for first quarter 2017 to second quarter 2020

Status:

Active

Frequency:

Quarterly

Record number:

5302

The Resale Residential Property Price Index (RRPPI) measures the change in transaction prices over time for resale houses and condominium apartments in Montréal, Ottawa, Toronto, Calgary, Vancouver, Victoria, and for the composite of these six census metropolitan areas (CMAs).

Data release - July 30, 2020

Description

The Resale Residential Property Price Index (RRPPI) measures the change in transaction prices over time for resale houses and condominium apartments in Montréal, Ottawa, Toronto, Calgary, Vancouver, Victoria, and for the composite of these six census metropolitan areas (CMAs). This is a quarterly index, starting in the first quarter of 2017, composed of 12 sub-indices¿one for each property type (house and condominium apartment) in each of the six CMAs.

The RRPPI covers the resale part of the Residential Property Price Index (RPPI) http://www23.statcan.gc.ca/imdb/p2SV.pl?Function=getSurvey&SDDS=5303. A detailed methodology for the RPPI is available in the Prices Analytical Series https://www150.statcan.gc.ca/n1/pub/62f0014m/62f0014m2019006-eng.htm.

The RRPPI is produced jointly by Teranet Inc. (Teranet) and National Bank of Canada (NBC) based on a customized methodology developed in collaboration with Statistics Canada. Teranet and NBC have licensed the use of the RRPPI to Statistics Canada for publication and distribution.

Reference period: The time period for which the RRPPI equals 100; currently, this is 2017.

Subjects

  • Construction
  • Construction price indexes
  • Prices and price indexes
  • Residential construction

Data sources and methodology

Target population

All residential single/semi-detached houses, row houses, and apartment condominiums in Montréal, Ottawa, Toronto, Calgary, Vancouver, and Victoria, eligible for resale, that actually sold between January 1, 1998 and the current period.

Instrument design

This methodology type does not apply to this statistical program.

Sampling

This survey is a census.

Data are collected for all units of the target population, therefore no sampling is done.

Data sources

Data collection for this reference period: 2020-04-01 to 2020-06-30

Data are extracted from administrative files.

Property transaction data for the RRPPI come from the provincial land registry offices in Alberta, British Columbia, Ontario, and Quebec, from 1998 to the current period. As each property sale in Canada is registered in its respective provincial land registry office, these data capture all property transactions over this period. The RRPPI includes only transactions for residential single/semi-detached houses, row houses, and condominium apartments in the Montréal, Ottawa, Toronto, Calgary, Vancouver, and Victoria CMAs. These data are collected and processed by Teranet and NBC.

Transaction data from each provincial land registry are matched to Teranet's property database to create a sales history for each property. Sales pairs are created for each property that has sold twice, capturing the transaction prices and the closing dates (i.e., the date when the land title changes) for both sales for that property; sales pairs are created for consecutive sales for properties that have sold three or more times. Properties that have sold only once (e.g., newly built properties) are excluded.

Error detection

Error detection is an integral part of data processing activities conducted by Teranet and National Bank. Automated edits are applied to data records during data ingestion to identify missing data, as well as capture and report errors.

Imputation

This methodology does not apply.

Estimation

The RRPPI is calculated using a repeat-sales methodology, specifically the unweighted arithmetic repeat-sales index proposed in Shiller, R. J. (1991). Arithmetic Repeat Sales Price Estimators. Journal of Housing Economics, 1(1): 110-126. The CMA-level (elemental) indices of the RRPPI are calculated using this method. Higher level indices are part of the RPPI.

A disadvantage of any repeat-sales index is that it is subject to perpetual revision. Computing the index for one period requires computing the index for all periods and, as new data become available, this will change the index values for previous periods.

The RRPPI avoids revision by using a movement splice to update the index when new periods of data become available. With this approach, the price movement of the series computed with the most recent data is chained together with the last index value of the original series, thereby avoiding revision of the original series.

Quality evaluation

Prior to publication, the RRPPI is analyzed for comparability with historical trends, as well as for coherence with results from related economic indicators, known current events, and information from other external sources. Regular communication and reporting between Statistics Canada and Teranet and NBC is done to ensure the underlying quality of the microdata and index calculation.

Disclosure control

Statistics Canada is prohibited by law from releasing any information it collects which could identify any person, business, or organization, unless consent has been given by the respondent or as permitted by the Statistics Act. Various confidentiality rules are applied to all data that are released or published to prevent the publication or disclosure of any information deemed confidential. If necessary, data are suppressed to prevent direct or residual disclosure of identifiable data.

Data are released only in the form of a price index, and consequently it is not possible to identify the property owners and sellers.

Revisions and seasonal adjustment

The RRPPI has a one quarter revision period and is not seasonally adjusted.

Data accuracy

The statistical accuracy of this index depends on the quality and accuracy of the transaction information captured and stored by the provincial land registry offices. As the land registries record legal title changes of properties, these data should be fairly accurate.

The only divergence between the target population and the sample of transactions available relate to properties that sold prior to January 1998 and only once since then. These properties are not used to calculate the RRPPI, though they fall within the scope of the target population as these properties are both eligible for resale and actually sold after January 1998. This discrepancy between the target population and the sample will disappear over time.

The movement splice used to calculate the RRPPI can introduce a drift between the published index series and the index series computed with the most recent data. The impact of any drift in the index from this type of splicing can easily be evaluated over time by comparing the index calculated using all of the data to the spliced index, and this is part of the quality assurance work done when producing the RRPPI. Provided that the historical index series is relatively stable over time, there should be minimal drift from splicing.

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