Reply #16: It is not a change in the asset value, it is the value upon creation [View All]

I think you missed the question slightly. I was speaking of a new home built. Not of changes in values of homes which people own and have bought previously (aside from cashing out refi against them, which is a different matter altogether).

I don't see how else the GDP number for residential investment would be calculated other than the value of the item created (a house), upon sale when a loan is generated, or possibly, when it is in inventory up to the point of sale and loan.

GDP may be an income statement, but it is clearly a measure of output value for a quarter.

The value of houses seems to differ from that of(for example) vehicles in a quarter, in that the value of a house is driven by market force inflation, whereas that of a vehicle is fixed. Therefore, GDP in a quarter where a lot of houses are generated would seem to have an element of price inflation.

Correct me if I am wrong. Is there some other way an output index is calculated for residential investment? I don't see how.

I am going somewhere very important with this thread of analysis.
Dan