Home > Statistics > Indices of owner-occupied housing prices > 2015 > 3rd quarter > Quality Description: Indices of owner-occupied housing prices

Quality Description: Indices of owner-occupied housing prices

• 1. Relevance
• 2. Methodological description
• 3. Correctness and accuracy of the data
• 4. Timeliness and promptness of published data
• 5. Accessibility and transparency of the data
• 6. Comparability of the statistics
• 7. Coherence and consistency

1. Relevance

1.1 Information content and purpose of use

Indices of owner-occupied housing prices describe the costs of purchasing and owning owner-occupied dwellings, as well as the development of purchase prices of dwellings.

The owner-occupied housing expenditures describes the development of transaction prices of dwellings new to the households and of other costs and services related to owner-occupied dwellings.

The purchases of dwellings describes the price development of dwellings bought by households. The purchases of dwellings consists of the price indices of new and old dwellings in housing companies, and the statistics on real estate prices, which consists of the price indices of new and old detached houses.

1.2. Concepts, classifications and data

The data

Purchasing of dwellings is based on price data on new dwellings, which are based on the information about transactions in new dwellings made by the largest real estate agents and building contractors. Statistics Finland receives the information via a private price monitoring service.

The data on ownership of dwellings are based on data collect for the calculation of the consumer price index, which Statistics Finland's interviewers collect. Price data are also received directly from data suppliers or by collecting them from the Internet.

The data of the indices of housing prices are based on the data of Statistics Finland's indices on prices of dwellings in housing companies and real estate prices.

Concepts :

Dwelling : A dwelling refers to a room or suite of rooms that is equipped with a kitchen, kitchenette or cooking area and is intended for year-round habitation.

Old/new dwelling: An old dwelling refers to a dwelling that has not been completed in the examined year or the year before it. Respectively, a new dwelling refers to a dwelling completed in the statistical reference year or the year before it that is sold for the first time.

(Nominal) price index : Indicates the change in prices compared with the index base time period (2010=100).

Index formula: Index formula is a mathematical function by means of which an individual key figure describing change is calculated from observation values (e.g. Fischer’s, Laspeyres' and Paasche’s index formulas).

Total index : Total index is the index calculated as a weighted average from all the sub-series belonging to the description area of the index. Total index can be calculated as a weighted index of detailed price index series describing different commodity groups.

Quarterly change: Quarterly change is the relative change in the index from a time period one quarter earlier. The change is usually expressed in percentages.

Change on one year: Year-on-year change is the relative change of the index from the corresponding time period twelve months earlier (e.g. year-on-year change of the total index of consumer prices, i.e. inflation).

Point figure: Point figure is a change quantity used in price indices, which expresses the price, average price or index of the comparison period relative to the price, average price or index of the base period. The point figure of the base period is usually denoted by the number hundred. For example, if the point figure of a commodity at a certain point in time is 105.3, the price of the commodity has risen by 5.3 per cent compared to the base time period.

Classifications :

Classifications of the index of owner-occupied housing prices:

O.1. Owner-occupiers' housing expenditures

O.1.1. Acquisitions of dwellings

O.1.1.1. New dwellings

O.1.1.1.1. Purchases of new dwellings

O.1.1.1.2. Self-build dwellings and major renovations

O.1.1.2. Existing dwellings new to households

O.1.1.3. Other services related to the acquisition of dwellings

O.1.2. Ownership of dwellings

O.1.2.1. Major repairs and maintenance

O.1.2.2. Insurance connected with dwellings

O.1.2.3. Other services related to ownership of dwellings

Classifications of the index of housing prices:

H.1. Purchases of dwellings

H.1.1. Purchases of new dwellings

H.1.2. Purchases of old dwellings

2. Methodological description

Costs related to purchasing of dwellings include the purchase price of new dwellings and property commissions. New dwellings in housing companies in the statistics on the prices of dwellings in housing companies and new detached houses in the statistics on real estate prices describe the purchase of new dwellings.

Costs related to owning a dwelling, which include renovation costs and premium for fire insurance on detached houses are derived from the consumer price index and they are part of the commodity basket of the consumer price index. The structure of private households' consumption is estimated when forming the commodity basket, i.e. how much consumers spend per year on purchasing different goods and services. The principle source is data on private consumption in national accounts that are based on data from Statistics Finland's Household Budget Survey. In addition, for instance, data from central retail corporations and trade associations are used.

Purchases of new and old dwellings depicting purchases of dwellings, contain data from the statistics on prices of dwellings in housing companies and on real estate prices.

The point figures describing the price indices of dwellings and owner-occupied dwellings are derived by weighting together the lower level indices with consumption expenditure weights.

3. Correctness and accuracy of the data

3.1. Reliability of the statistics

In the price index of owner-occupied dwellings the purchase price of new dwellings is based on the statistics on the prices of new dwellings, which is published as part of the statistics on prices of dwellings in housing companies. Dwellings built for oneself, describes the price development of dwellings that have been built or contracted by the household for personal use and the data are based on information collected from building companies and prefabricated house manufacturers. In terms of renovations, the data are based on the data of the consumer price index and the building cost index.

The data on other services related to acquiring a dwelling, large renovations, insurance premiums and other services related to housing are based on data collected by the consumer price index.

In the house price index, the data are based on the data in the statistics on real estate prices and prices of dwellings in housing companies. The weights are based on the structure of the dwelling stock and its estimated current prices.

3.2. Accuracy of the statistics

The data on purchasing old dwellings are preliminary for the first release. The preliminary data on purchasing of old dwellings includes approximately two-thirds of all housing transactions and all transactions of old real estate. The data on detached houses built by the owner and on general housing costs are final. The data content is determined based on the Commission Regulation (93/2013) that entered into force at the beginning of 2013.

4. Timeliness and promptness of published data

Data are released approximately 95 days from the end of the reference period. The release dates are determined by Eurostat's release schedule. The data of the first release are preliminary and final in the second release.

5. Accessibility and transparency of the data

The basic statistical publication and database tables of the index of owner-occupied housing prices are accessible on Statistics Finland’s website.

Data on the indices of housing prices from other EU countries are available on Eurostat's website, eurostat (http://ec.europa.eu/eurostat).

6. Comparability of the statistics

6.1. Comparability with other data

Indices of owner-occupied housing prices are internationally comparable between EU member states.

6.2. Comparability over time

Aggregate level data on indices of owner-occupied housing prices are available starting from 2010.

7. Coherence and consistency

In addition to indices of owner-occupied housing prices, Statistics Finland publishes data on the consumer price index and on the prices of dwellings in housing companies and real estate. The indices of owner-occupied housing prices cover the share of owner-occupied dwelling in the commodity basket of the consumer price index. The indices of housing prices depict the development of housing prices of the whole country in total.

Source: Indices of owner-occupied housing prices, Statistics Finland

Inquiries: Petri Kettunen 029 551 3558, Martti Korhonen 029 551 3451, asuminen.hinnat@stat.fi

Director in charge: Ville Vertanen

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Updated 12.1.2016