The House Price Index (HPI) reflects changes in dwelling prices in a specified period of time.

Definitions

Existing flats and single-dwelling houses.

Prior occupied (by legal entity, municipality, government, other households) apartments that are sold to households.

Prior occupied (by legal entity, municipality, government, other households) houses that are sold to households.

The HPI is a quarterly indicator that measures the changes in the dwellings transaction prices that households acquire on the market.

The HPI covers all transactions of dwellings made by households regardless of its final use.

This index covers not only the transactions that are new to the household sector (purchased from legal entity, municipality, government), but also all that are traded between households. Prices include land value.

New flats and new single-dwelling houses.

Prior unoccupied flats in multi-dwelling houses that are sold to households within 3 years after commissioning.

Prior unoccupied, fully completed buildings fit for human occupancy that are sold to households.

Data availability

Data dissemination calendar

Theme Reference period Planned release datesort icon Remarks
House Price Index
  • 4th quarter 2017
16.03.2018

Theme Reference period Actual release datesort icon Remarks
House Price Index
  • 3rd quarter 2017
14.12.2017
House Price Index
  • 2nd quarter 2017
13.09.2017
House Price Index
  • 1st quarter 2017
15.06.2017
House Price Index
  • 4th quarter 2016
16.03.2017
House Price Index
  • 3rd quarter 2016
14.12.2016

Classifications

According to the requirements of the Commission Regulation (EC) No 93/2013 as of 1 February 2013 laying down detailed rules for the implementation of Council Regulation (EC) No 2494/95 concerning harmonized indices of consumer prices, as regards establishing owner-occupied housing price indices the HPI is published at two levels of detail with the following structure:      

       H.1. Dwellings (total):

        H.1.1. New dwellings;

        H.1.2. Existing dwellings.

Data collection

Survey method and data source

The main data source used to obtain the information is the State Unified Computerised Land Register. The index is calculated based on the transaction prices registered in the Land Register by households during the comparison period, whereas weights reflect structure of the dwelling purchases during the previous calendar year.

The weights are revised every year and recalculated into the prices of the 4th quarter of the previous year. 

Target population

Population Coverage

The HPI covers all transactions in which household(-s) is(are) indicated as a buyer, regardless of the legal status of the seller(-s). The HPI includes also dwelling purchases made by households – non-residents within the economic area of Latvia.
The HPI excludes transactions between legal entities, municipalities and government, as well as deals engaging legal entity as a buyer and household as a seller.
The index does not include commercial areas, outhouses, saunas, garages, cellars, gazebos and other structures unfit for human occupancy.

Geographical coverage

The whole territory of the Republic of Latvia.

Calculation of data

Calculation methods

The House Price Index is a Laspeyres-type quality-adjusted price index.

For the index calculation all transactions are stratified into the following groups (strata):

  • new flats;
  • new single-dwelling houses (until 2008, including);
  • existing flats in Riga;
  • existing flats in the rest of the country;
  • existing single-dwelling houses.

The group index is calculated as the ratio of geometric means of transaction prices in comparison period and reference period.

In order to adjust structural (qualitative) dwelling transaction differences between the comparison and reference periods, a hedonic regression method is used within each group. By the method based on the most significant price determinants, a hypothetical value of dwelling is calculated as follows:              

Lntransaction price = β0 + β1x1 + β2x2 + ... + βixi                 i = 1, ..., n,     where

Ln transaction price – a natural logarithm of transaction price;

xi – the price factors;

βi – the regression coefficients (factor impacts);

β0 – the constant.

The factors having the greatest impact on the dwelling price and taken into account in the HPI calculations are geographical location of the property, property size (area) and availability of amenities.

For the calculation of higher level price indices and the overall HPI a Laspeyres-type formula that expresses the weighted arithmetic mean value of the lower level price indices is used:

, where

IT/0 –  the overall HPI in the period T, compared to the period 0 (reference period);

– the share of the transaction price in stratum j in a reference period;

– the price index in stratum j in a period T, compared to the period 0 (base period).

Reference period

Price reference period used in the price calculations is the 4th quarter of the previous year. To calculate price changes in a longer time period, the price indices of each year are chained in one dynamic series with the same reference period.

The HPI reference period is the year 2015, expressed by 100 index points (2015 = 100). The price indices are used to calculate the price changes over the previous quarter, corresponding quarter of the previous year or any other time period.

Data revision

The data are published on the 75th day after the end of the current quarter. The revised data for previous quarter are published together with the provisional data of current quarter.

Comparability

Comparability over time

The comparable data are available since 2006.

International Comparability

Eurostat

Eurostat (the Statistical Office of the European Union) compiles and on its website publishes the House Price Index in European Union (EU) and euro area as well as on each Member State separately.

The calculated house price indices are available under section: Statistics/ Economy and finance/ Housing price statistics

http://ec.europa.eu/eurostat/web/housing-price-statistics

Confidentiality

Confidentiality of the information is protected by the Section 18 of the Statistics Law stipulating rights and obligations of the Central Statistical Bureau of Latvia and other state authorities producing official statistics.

Quality

Compliance of the HPI calculation methodologies and content with the standards and requirements of the Commission Regulation (EU) No 93/2013 and European Parliament and Council Regulation (EU) 2016/792 is evaluated by the Eurostat experts.

Contact person on methodology

Name Surname Phone number Position Email
Nataļja Dubkova 67366644 daļas vadītājs Natalja.Dubkova@csb.gov.lv

Methodology last updated

15.06.2017

Consumer Price Index

Explanation of symbols

-

Magnitude zero

0

Less than half of the unit employed

...

Data not available or too uncertain for presentation

X

Figure not applicable because column heading and stub line make entry impossible, absurd or meaningless

.

Data not released for confidentiality reasons

If data are absolute numbers

0

Magnitude zero