Residential Property Price Index (RPPI)

Detailed information for first quarter 2017 to third quarter 2020

Status:

Active

Frequency:

Quarterly

Record number:

5303

The Residential Property Price Index (RPPI) measures the change over time in the selling price of residential properties.

Data release - October 29, 2020

Description

The Residential Property Price Index (RPPI) measures the change over time in the selling price of residential properties. The RPPI provides a comprehensive and unique portrait of the residential real estate market as it covers both new and resale properties, and provides a look at both house and condominium apartment markets for the census metropolitan areas (CMAs) of Montréal, Ottawa, Toronto, Calgary, Vancouver, Victoria, and for the composite of these six CMAs. The RPPI is a quarterly index, starting in the first quarter of 2017.

The RPPI is designed to provide the necessary information to users (policy makers, economists, national accountants, financial markets and homebuyers) in order to assess the economic situation of the real estate markets in the six CMAs covered by the RPPI.

The RPPI is a composite of the following indexes:

- The New Housing Price Index (NHPI). For more information see:
http://www23.statcan.gc.ca/imdb/p2SV.pl?Function=getSurvey&SDDS=2310,
- The New Condominium Apartment Price Index (NCAPI). For more information see:
http://www23.statcan.gc.ca/imdb/p2SV.pl?Function=getSurvey&SDDS=5236,
- The Resale Residential Property Price Index (RRPPI). For more information see:
http://www23.statcan.gc.ca/imdb/p2SV.pl?Function=getSurvey&SDDS=5302.

A detailed methodology for the RPPI is available in the Prices Analytical Series found at: https://www150.statcan.gc.ca/n1/pub/62f0014m/62f0014m2019006-eng.htm

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

Subjects

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

Data sources and methodology

Target population

The target population for the RPPI is the union of the target populations for the NHPI, NCAPI, and RRPPI, and comprises all residential single/semi-detached houses, row houses, and apartment condos in Montréal, Ottawa, Toronto, Calgary, Vancouver, and Victoria that are either i) new builds and eligible for sale in the current month, or ii) eligible for resale and actually sold between January 1, 1998 and the current period.

Instrument design

This methodology type does not apply to this statistical program.

Sampling

The NHPI and NCAPI each have their own sampling frames and methods. For more information on these methods see the NHPI and NCAPI, respectively. As the RRPPI is a census of all repeat sale properties sold between January 1, 1998 and the current period in the 6 CMAs in scope, sampling is not applicable for this component of the RPPI.

Data sources

Data collection for this reference period: 2020-07-01 to 2020-09-30

Data are extracted from administrative files.

Index values for the RPPI come from the NHPI (new houses), NCAPI (new condominium apartments), and RRPPI (resale houses and condominium apartments).

Error detection

The NHPI, NCAPI, and RRPPI each have their own mechanisms to detect and resolve errors.

Imputation

This methodology does not apply.

Estimation

The RPPI aggregates the CMA-level indices from the NHPI, NCAPI, and RRPPI to produce a price index for residential properties in Montréal, Ottawa, Toronto, Calgary, Vancouver, Victoria, and for the composite of these six census metropolitan areas (CMAs). Each of these indices are aggregated with a Young index, with sales weights capturing the value share of new versus resale properties, and houses versus condo apartments, sold in each CMA.

Source of weight data

The weights for the RPPI are derived from the Canada Mortgage and Housing Corporation's Market Absorption Survey and the inventory of repeat-sales transactions from Teranet Inc. and National Bank of Canada used to calculate the RRPPI. Both of these sources capture the value of all new and repeat-sales transactions respectively for residential single/semi-detached houses, row houses, and low rise/high rise apartment condominiums; consequently, the aggregate values are comparable in order to produce a value share for new versus resale properties, as well as houses versus condominium apartments.

Weight reference period

The weight reference period is the three calendar years prior to the current year of the index. For the 2020 index values, the weight reference period is 2017, 2018, and 2019.

Weight update frequency

The RPPI weights are updated annually. To avoid overlap with the revision period, the weights are updated in the second quarter of the year.

Quality evaluation

Prior to publication, the RPPI 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.

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 suppliers of price data nor the sellers of residential properties.

Revisions and seasonal adjustment

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

Data accuracy

The statistical accuracy of this index depends on quality of the NHPI, NCAPI, RRPPI, and the CMHC's Market Absorption Survey. These sources are subject to their own errors.

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