Noise and Consensus
In this city we suffer from those who choose to make noise. I can’t figure out whether they didn’t get enough milk with their Corn Flakes or they are simply having a bad hair day.
In the last post a couple of comments flew in about how the Vancouver Real Estate Board stats seem to be something less or more than what they are.
Personally, I find conspiracy theories raise their head because someone doesn’t understand or have the knowledge of how things come to be. Then they pull out the crusader’s sword demanding raw data so that you can make their own stats. That action I believe, will do nothing more than dilute source statistics thereby adding confusion to something that already seems confusing. It’s an action I equate to locking five economists in a room and demand that they reach consensus.
“Honestly, it seems to me that the REBGV is playing with stats.” – Anon
“It is really weird. The sales and average price that cannot be distorted by REBGV all show negative signs for the market. Only the benchmark price that no body knows how it is calculated by REBGV shows a highest price ever.
“Frankly, REBGV is not willing to see a price decrease.” – Pop Smith
The Magic of Stats
Wonder no more! The attached unedited document describes the following:
- The MLS®Home Price Index.
- What is the MLS®Home Price Index?
- What are Benchmark Properties and Benchmark Prices?
- What’s the difference between a Benchmark Price and Index Price?
- How is the MLS®HPI calculated?
- What property types and geographic areas are measured by the HPI?
In providing this information it is done with the wish that for those who choose to can read, understand and by doing so will be sufficiently enlightened to say “oh that’s how it’s done” and be satisfied.
Sampler of What’s Ahead
The Real Final Word
Life is too short so to be clear, I’m not prepared to spend time in endless discourse on this blog about how benchmark manifestations should be customized to personal preferences. I trust that as evidenced in the report minds greater than mine have figured it out and it works correctly.
My lasting response to those who wish to engage these issues further is to rely on Porky Pig’s proclamation.
Copyright Image Courtesy Warner Bros.