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The MLS® System Housing Price Index (HPI) is coming to Calgary in February, as part of a nationwide rollout involving boards in Canada’s largest cities. It’s an exciting new tool that CREB® has developed in cooperation with several other boards and the Canadian Real Estate Association (CREA®).
The average price in market can vary widely from month to month, depending on volume shifts in various price segments. Reporting the average price can sometimes falsely exaggerate trends, causing confusion with clients and real estate professionals alike.
The MLS® HPI is a more consistent and reliable barometer of pricing trends than average and median home prices. The average and median prices are affected by changes in the mix of homes sold and can swing dramatically from month-to-month (based on types and prices of properties that are sold in a given month). This new monthly price measure 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 new Housing Price Index (HPI) uses a new standard that takes into consideration such items as lot size, age of building, number of rooms and many more factors. It’s a way of comparing apples to apples, much as the Consumer Price Index uses a standard basket of goods to determine cost of living.
What does this mean for you, the home owner, or potential buyer? It means a more comprehensive and more pure data than ever before – data you can use for understanding future price trends and estimating current market values.
The MLS® HPI is expected to become available sometime in February 2012.