An Examination of Dwelling Valuation Methods for the 1999 Survey of Financial Security - ARCHIVED

The new 1999 Survey of Financial Security (SFS) will provide a picture of the value and nature of assets held by Canadian families. Such information will make it possible to analyse asset holdings over the life cycle, as well as to look at the financial vulnerability and future consumption capabilities of Canadians.

This report identifies some problematic and complex issues related to the evaluation of owner-occupied dwellings (principal residence) and examines several possible approaches to valuing these dwellings. The following information about the dwelling is considered in suggesting possible valuation methods: insured value, assessed value, dwelling characteristics, and purchase price and year of purchase. An optimal method to produce an objective value for a dwelling is also suggested and methods for deriving the value of principal residences located on farms are discussed as well.