Better Stats For You

MLS® Home Price Index

A new national home price index will launch in February. This index will replace the MLS®Link Housing Price Index, which has been used by Greater Vancouver and Fraser Valley REALTORS® since the mid 1990s.

Old

  • The current HPI – launched in 1995 in Fraser Valley and 1996 in Greater Vancouver – provided the most accurate indication of housing price trends in our market, but was not usable outside of the Lower Mainland because no other market has comparable data.

New

  • The new index was developed by five of Canada’s largest real estate boards – Greater Vancouver, Fraser Valley, Calgary, Toronto and Montreal – in partnership with the Canadian Real Estate Association and will be called the MLS® Home Price Index (MLS® HPI).
  • This new tool which, similar to the previous index, will allow housing price trends to be traced over time for different areas within participating board markets and for different property types. The MLS® HPI will also allow for comparisons between local and national markets.
  • MLS® HPI as a national collaboration will continue to position the industry as the most credible and reliable source of real estate data in the country.

Changes

There will be a few notable changes to the index in the Greater Vancouver market.

  • The new MLS® HPI will be re-indexed to equal 100 in January 2005. The previous MLS®Link HPI was indexed to 2001. Sales prior to 2005 will not be considered in the MLS® HPI and will provide benchmark price trend data for the three main property types: detached, attached, and apartment.
  • An expanded set of property categories will also be available to now include one-storey and two-storey homes. A composite category has also been created to track residential activity across all property types in different areas within the region.
  • New property markets have been added to increase the scope of the HPI. Some HPI markets have also been redefined to produce more complete data.

Updating The “Benchmark” Home

An HPI measures how home prices change over time and provides benchmark prices of homes with “typical” characteristics in a given area. It takes into consideration what averages and medians do not – items such as lot size, age, number of rooms, etc. The most commonly traded set of these attributes makes up the typical or ‘benchmark’ house. Prices paid for homes with these attributes determine benchmark home prices.

Similar to the MLS®Link HPI, MLS® HPI benchmark prices will represent the price of a typical property within a given area or sub-area. The typical or benchmark home attributes for the area and sub-areas within the Board have been updated and will be reflected in the MLS® HPI.

Courtesy REBGV Image Credit

About Larry Yatkowsky

Larry is a recognized real estate expert. A veteran professional, his experienced counsel leads Vancouverites in his west side community to place their trust in a man passionate about his work. Uncompromising ethics bring a balanced approach to realizing your real estate dreams.

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*Disclaimer: Statistics Courtesy REBGV. While believed to be accurate they are not guaranteed.
**Numbers provided may vary as they are dynamically posted by the REBGV.

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