What is the MLS® HPI?
Developed using data from the Multiple Listing Service®, the MLS® Home Price Index (or MLS® HPI for short) allows you to see trends in home prices for a specific type of house in a given neighbourhood.
Combined with the knowledge, experience and skills of your REALTOR®, the MLS® HPI allows you to better understand these trends — and how they can affect the market value of your home.
More importantly, though, it helps you approach one of life’s most important decisions — buying or selling a home — with greater confidence.
What can it do for me?
The MLS® HPI is not designed to predict the value of an individual property. However, since it is based on MLS® listing content — a comprehensive and accurate source of real estate data in Canada — the MLS® HPI provides a more precise picture of home price trends in a given region, municipality or neighbourhood.
It can help you by:
Putting accurate information in the hands of your REALTOR®, who can use it to help you get the right price, whether you’re buying or selling
Helping you see price trends, so you can plan ahead
Allowing you to compare home prices “apples-to-apples” across the entire country if you’re moving from one region to another
How does the MLS® HPI work?
The MLS® HPI can help you gauge changes in housing prices over time, including changes in:
Overall home prices for the market as a whole
Prices for specific housing categories in a given area, or for the overall market
This information will help you easily determine the market value of a home.
Easy to calculate
The MLS® HPI tracks changes in home prices by comparing price levels at a point in time with price levels in a base (reference) period. The base period value is always 100.
For example, if the base period for single-family homes is 2005, and the MLS® HPI value for single-family homes in December 2011 is 149.1, you know that the value of single-family homes is up 49.1%, compared with 2005 (149.1 − 100 = 49.1%).
Source: Canadian Real Estate Association (CREA)