About the MLS® Home Price Index
The MLS® Home Price Index (HPI) provides time-related indices on residential housing markets of participating real estate boards in Canada. The MLS® HPI is the best and purest way of determining price trends in these markets. Pioneered by the real estate boards of Calgary, Fraser Valley, Greater Montreal, Greater Vancouver, and Toronto and the Canadian Real Estate Association. In 2009, the partners contracted with Altus Group to develop the MLS® HPI, which launched the MLS® HPI in January 2012.
Why an MLS Housing Price Index?
Typically the public has relied on measures such as average or median price. These real estate boards wanted to develop an improved method to capture and analyze Canadian home prices based on both quantitative and qualitative housing features. Quantitative features captured by the index are, for example, number of rooms and bathrooms, living area above-ground and the age of the home. Qualitative features captured include finished basement, new or resale, and the home’s proximity to schools, golf courses, parks, etc. Essentially the HPI is an index that compares a particular property (say a Calgary bungalow in Mt Pleasant) and tracks it’s change in value over time – a much improved indicator of any typical homes value.
The MLS® Housing Price Index (MLS® HPI) gauges prices relative to January 2005 (an arbitrary benchmark date which happened to contain an abundance of data), and tracks price trends for these benchmark housing types: ▪ Single family homes ▫ 1-storey ▫ 2-storey ▪ Townhouse/row units ▪ Apartment units Benchmark homes are based on typical homes in each neighbourhood. The Benchmark home price is a constant quality home price measure.
Why does it matter? Average and median home prices are often misinterpreted, are affected by changes in the mix of homes sold, and can swing dramatically from month-to-month (based on the types and prices of properties that sold in a given month). The MLS® HPI overcomes these shortcomings. Compared to all other Canadian home price measures, the MLS® HPI identifies turning points sooner, is the most current, and is the most detailed and accurate gauge for Canadian home prices.
The MLS® HPI is based on homes sold by Realtors® and is provided as a service from participating real estate boards to its members and the public. For the best and most accurate market data on your property contact us at 403-289-3435 or email [email protected].
For public information visit MLS® HPI