Correlations of provincial house prices in Canada 1990-2014

A common opinion that I come across is that there is no such thing as a “Canadian housing market”.  Instead, the various housing markets across the country behave independently of one another.  I used the CMHC webcrawler to gather data on annual median provincial prices of absorbed houses from 1990-2014.  I then used the corrgram package in R to determine the degree of linear association of house prices between provinces and the 95% confidence interval.  The results show a very high correlation across all provinces suggesting to me that there is in fact a “Canadian housing market”.

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