Government Relations

CREA introduces a new Home Price Index

0 Comments 27 February 2012

New MLS Home Price Index

MLS Home Price Index

 

The Canadian Real Estate Association (CREA) has launched a new system to measure home prices and home price growth – the MLS® Home Price Index (MLS® HPI).

The idea of a Home Price Index is not new to Canada. The real estate boards of Fraser Valley and Greater Vancouver have been using an HPI since the mid-1990s. However, the MLS® HPI is the first Home Price Index to use MLS® data to track trends in home prices in markets across Canada.

The problem with the traditional average and median measures is that they can be skewed towards very expensive or inexpensive home sales from one time period to the next. The MLS® HPI will provide a less volatile measure of home prices by taking into consideration overall home prices on the market as well as prices for specific housing categories in a given area.

Indexing will be based on both qualitative data – proximity to shopping, schools, attractions – as well as quantitative data, such as a number of bedrooms and bathrooms, the age of a property, etc.  Thus, the new, more accurate, index may better help RERALTORS® figure out what parts of their local market to focus on.

Initially, the MLS® HPI will be published in each of Canada’s major real estate markets (Montreal, Toronto, Calgary, Vancouver and the Fraser Valley) in the beginning of each month to reflect activity that occurred during the previous month. Another 16 major centres should be covered by the end of 2013.

To learn more about MLS® HPI go to http://homepriceindex.ca

 

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Author

This post was written by who has written 49 posts on Ontario Real Estate Association Blog.

Matthew Thornton is OREA’s Manager of Government Relations. In that role he provides policy analysis, research, writing and strategic expertise to OREA’s Director of Government Relations and Government Relations Committee on legislation, policy and regulations that affect REALTORS® and the real estate industry. Matthew also manages all the government relations social media channels for the association. Prior to joining OREA, Matthew worked as a legislative intern at Queen’s Park in the Ontario Legislature Internship Programme. As an intern, Matthew worked for two backbench MPPs in government and on the opposition benches. Matthew is an active member of the Canadian Society of Association Executives and the Public Affairs Association of Canada. He holds a Master of Arts degree in Political Science from the University of Western Ontario and recently completed his Certified Association Executive designation.