Breakdown of the house price index
Article 3
The HPI shall cover the following expenditure categories: (a) H.1. Purchases of dwellings; (b) H.1.1. Purchases of newly built dwellings; (c) H.1.2. Purchases of existing dwellings.
Commission Implementing Regulation (EU) 2023/1470 CHAPTER 2 — HOUSE PRICE INDEX
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Weights reflecting the structure of expenditure on purchases of dwellings
Article 4
1. Each year, Member States shall compile and transmit to the Commission (Eurostat) one set of weights for the HPI, in accordance with the expenditure categories set out in Article 3. 2. Member States shall derive sub-index and elementary aggregate weights reflecting the structure of housing expenditure, used in the index of year t, as follows: (a) data sources providing information on household expenditure on transacted dwellings that belong to the target universe of the HPI in year t-1 or year t-2 shall be used to obtain sub-index HPI expenditure shares and divide them among the elementary aggregates of the sub-index; (b) the HPI expenditure shares based on data from the year t-2 shall be reviewed and updated to make them representative of the year t-1; (c) the HPI expenditure shares for the elementary aggregates shall be adjusted with an appropriate price change between the year t-1 and the fourth quarter of the year t-1. 3. Sub-index and elementary aggregate weights shall be kept constant throughout the calendar year. 4. The sum of all sub-index weights shall equal 1 000. 5. The sub-index weight shall be equal to the sum of weights for elementary aggregates distinguished within the given expenditure category. 6. Member States shall use stratum weights that are representative of household expenditure on transacted dwellings belonging to the target universe of the HPI in the comparison period, or in any period that precedes the current year by no more than 2 years.
Weights reflecting the level of expenditure on purchases of dwellings
Article 5
Member States shall derive sub-index and total HPI weights reflecting the level of expenditure on purchases of dwellings in the year t-1.
Collection of prices and price-determining characteristics
Article 6
1. Member States shall acquire the basic information needed for the definition of the strata or elementary aggregates, or of both, and the compilation of the HPI. 2. Member States shall ensure that data collection covers relevant price-determining characteristics that allow the compilation of a price index that is unaffected by quality differences between transacted dwellings.
Representativity
Article 7
1. Member States shall ensure that the data used as a source of information on transacted dwellings is representative of the target universe of each sub-index of the HPI in each reference period. 2. Member States may exclude from the HPI one or more types of dwelling and one or more regions, provided that the total share of excluded dwellings in the value of all purchases of dwellings by households does not exceed five parts per hundred. Expenditure on purchases of dwellings for excluded types of dwelling or regions should be allocated to the most similar type of dwelling or region.
Treatment of prices
Article 8
1. The HPI shall be based on transaction prices of dwellings. 2. A transaction price of a dwelling shall be included in the HPI for the quarter in which the legal ownership of the dwelling is transferred from the seller to the buyer.
Index compilation
Article 9
1. Member States shall obtain sub-indices using one of the following options: (a) as an aggregation of stratum indices calculated either as hedonic indices or indices based on a method that replicates the matched model approach; (b) as hedonic indices or indices based on a method that replicates the matched model approach; (c) as a stratified median or mean index. 2. Where a Member State uses a hedonic index, it shall ensure that the applied method controls for quality differences between transacted dwellings in the comparison and reference periods. 3. Where a Member State uses a method that replicates the matched model approach, it shall ensure that matched price comparisons are made for the same dwellings in the comparison and reference periods, in such a way which ensures that quality differences between transacted dwellings are controlled for. 4. Where a Member State uses a stratified median or mean index, it shall determine stratification variables on the basis of statistical analysis and ensure that the defined strata are sufficiently homogeneous.
Estimates
Article 10
1. Where the available number of transacted dwellings is insufficient to enable the calculation of a reliable price index for a certain stratum, Member States shall estimate the price change for that stratum as the price change for a stratum or a combination of strata characterised by comparable market conditions. 2. Member States shall not carry forward the previous quarter’s prices or impute the same price change as in a previous quarter, unless it can be justified as an appropriate estimate.
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