The Canadian Real Estate Association (CREA) has launched a new and more accurate way to measure price changes for homes—the MLS® Home Price Index (HPI). The initiative has been years in development, and the launch by CREA coincides with launches by real estate boards in Calgary, Vancouver, Fraser Valley, Toronto and Montreal.
The MLS® HPI is calculated using a statistical model measuring age and size of property, number of bedrooms, neighbourhood, new build or resale, number of bathrooms and square footage.
In regards to the launch, CREB® released this in a press release:
The new tool measures how typical properties are valued in the market rather than relying on average and median prices. In January, for example, the average price declined year-over-year, but only because more homes were sold in the lower-price ranges compared to the previous year, when more luxury home sales occurred.
“By combining information from the MLS® HPI with their own knowledge, experience and skills, REALTORS® can help their clients approach one of life’s most important decisions – that of buying or selling a home – with greater confidence,” says Bob Jablonski, president of CREB®.
