<<< back to article list

The trading day effect

Blog by Brad Herman | May 12th, 2013

Since last fall, news media coverage of Canadian home sales has acknowledged differences in the number of weekdays and weekends in the current month vs. the same month one year earlier. In statistics, it’s referred to as the trading day effect and it matters because it biases comparisons.

While its impact varies by local market, an analysis of close to four million records since 2000 for Canadian home sales overall shows that close to 18 per cent of sales fall on each weekday (Monday through Friday). By comparison, Saturdays only see about seven per cent of sales and Sundays see just five per cent.