#UPDATE IN REAL ESTATE LINGO SERIES#

3 P 0 is the 6-month moving average of the Multiple Listing Service average resale price therefore, this measure strictly reflects existing homes and would include all housing types sold in Canada. N is the number of monthly payments (assumed to be 300 over 25 years) and M 0 is the total value of the mortgage, where we assume a 95 per cent loan-to-value ratio, so that M 0=(0.95)* P 0. The weights given to each interest rate are calculated from the Canadian Financial Monitor Survey provided by Ipsos Reid.

Where r is the effective mortgage rate, which is a weighted average of discounted 1-, 3- and 5-year fixed-rate mortgages and the discounted variable-rate mortgage.

#UPDATE IN REAL ESTATE LINGO SERIES#

Quarterly housing-related costs (denoted by c) are based on a series of monthly mortgage payments and utility fees that are calculated as follows: 1 The higher the ratio, the more difficult it is to afford a home. The measure is a ratio of housing-related costs (mortgage payments and utility fees) to average household disposable income. The housing affordability index is meant to measure the share of disposable income that a representative household would put toward housing-related expenses.

Vacant space excludes retail and below grade space. Vacant space divided by, apartment, office or industrial market inventory, where vacant space is the sum of available, apartment, office or industrial market space as of the publication date. The New Housing Price Index is a monthly series that measures changes over time in the contractors' selling prices of new residential houses, where detailed specifications pertaining to each house remain the same between two consecutive periods.

Update in real estate lingo