a and Mats Wilhelmsson b

This paper proposes a price index construction methodology that can increase the quality of price index data for condominiums in Sweden. Currently, officially published market price indexes for condominiums and houses in Sweden suffer from a number of shortcomings. Notably they do not control for quality, or they are based on dates when transfer of ownership of the home occurs, and not the contract date. We develop a new price index that both controls for quality and reflect most recent price levels and changes. With access to a unique database we estimate alternative hedonic price indexes, and compare them both between themselves, as well as with arithmetic mean and median price indexes. However, there is a trade-off between control of quality, access to the most recent transactions, and market coverage on one hand, and ease of construction on the other hand