How will the new MLS® Home Price Index help you help your clients?
The housing price index (HPI) has always been the best measure for home price trends and now it’s going to get even better.
In February, CREA and five of Canada’s largest real estate boards, including FVREB, will launch a national index replacing our regional FVREB/REBGV MLSLink® HPI that’s been in place since the mid-90s.
Like the old index, this new MLS® HPI is the best and purest way of gauging price trends in the housing market. It takes housing quality into account, such as housing category, location, number of rooms, living area, etc., in a way that no other method of price tracking does.
What’s changed? The new index:
- Is more accurate because it’s been updated to reflect more sub-areas and new housing types (the old index was last updated in 2005)
- Is national in scope with uniform housing types across the country to allow for “apples to apples” comparisons between markets across the country (the old index was only valid in the Lower Mainland)
- Shows price trends at all levels: areas, sub-areas, municipal, regional and national (the old index excluded or combined certain Fraser Valley neighbourhoods)
- Divides single family detached into one and two storey categories providing greater stability and accuracy
Thanks to the MLS®, REALTORS® across Canada and the industry are already recognized as a credible, reliable source of real estate data and now the new MLS® HPI will build on this reputation. It will keep REALTORS® at the forefront of public opinion in terms of housing market expertise.
The MLS® HPI is scheduled for launch during the first week of February, 2012. Click here to see a more detailed matrix comparing the old index with the new.
