including condominiums.
Although the TNB-HPI attempts to adjust for quality changes of the individual housing units by adjusting
for the effect of renovations and additions, depreciation of the properties that are resold is neglected
causing some difficulty in comparing one sample period to another. Specifically, the omission of housing
depreciation results in a downward bias for the Teranet Index. The data used in the derivation of TNBHPI
are prices at registration, taken from government land registry databases. Therefore, the reference
date for a given transaction (and the associated price) is the closing date. This will likely turn into a
weakness during rapid and substantial market movements, as the index will identify market turning
points with a few months’ lag (i.e., the average lag between the transaction date and the closing date).